CVS Health Corp tops analysts’ estimates for earnings and revenue in fiscal Q3
- CVS Health Corp tops analysts’ estimates for earnings and revenue in fiscal Q3.
- The American retail pharmacy chain raised its guidance for the full year on Friday.
- Chief Executive Larry Merlo is scheduled to step down next year in February.
CVS Health Corp. (NYSE: CVS) published its financial results on Friday that topped analysts’ estimates for earnings and revenue in the fiscal third quarter. The company attributed its hawkish performance to robust demand for COVID-19 testing. CVS Health also raised its guidance for the full year on Friday.
Shares of the company were reported about 2.5% up in premarket trading on Friday. On a year to date basis, CVS Health Corp is still 9% down in the stock market, but has recovered close to 30% since its year to date low in March. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.
CVS Health Q3 financial results versus analysts’ estimates
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CVS said that its net income in the third quarter came in at £930 million that translates to 70.67 pence per share. In the same quarter last year, it had reported a higher £1.16 billion of net income or 89 pence per share.
On an adjusted basis, the American healthcare company earned £1.26 in the recent quarter that topped the experts’ forecast of £1.10 per share, as per FactSet. In the prior quarter (Q2), CVS had registered £2.27 billion of net income, as per the report published in the first week of August.
In terms of revenue, CVS Health recorded £50.95 billion of revenue in Q3. In comparison, its revenue was capped at a lower £49.25 billion. According to FactSet, analysts had anticipated a slightly lower £50.63 billion of revenue for the retail pharmacy chain in the third quarter.
CEO Larry Merlo to step down next year in February
CEO Larry Merlo commented on the earnings report on Friday and said:
“We’ve opened more than 4,000 COVID-19 test sites across the country since March, and have administered over six million tests. We’re helping businesses and universities safely reopen, and we were recently selected to administer COVID-19 vaccinations in long-term care facilities.”
Merlo is scheduled to step down next year in February, and executive Karen Lynch of Aetna will take over the role of CVS’ president and CEO.
For the full year, CVS now forecasts its adjusted per-share earnings to fall in the range of £5.59 to £5.66 versus the FactSet Consensus of £5.49 per share.
At the time of writing, the Woonsocket-headquartered retail pharmacy chain has a market cap of £66.28 billion and a price to earnings ratio of 10.59.