CVS posts strong Q2, with virus delaying elective procedures

AP – CVS Health is reporting surprisingly strong second-quarter earnings in part due to postponed elective medical procedures during the pandemic, and it raised its profit expectations for the year.

For the three months ended June 30, CVS earned USD2.99 billion, or USD2.26 per share.

A year earlier the Woonsocket, Rhode Island, company earned USD1.93 billion, or USD1.49 per share.

Adjusted for one-time gains and costs, earnings were USD2.64 per share. That is better than the USD1.93 per share analysts polled by Zacks Investment Research predicted.

CVS said yesterday the COVID-19 pandemic resulted in lower benefit costs due to the deferral of elective procedures and other discretionary use of its health care benefits segment.

Revenue was USD65.34 billion, topping the USD64.09 billion Wall Street expected.

CVS now anticipates full-year adjusted earnings between USD7.14 and USD7.27 per share. It previously predicted USD7.04 to USD7.17 per share. Shares are sharply higher before the opening bell.

Customers line up at a drive thru self-swab coronavirus test site at a CVS Pharmacy. PHOTO: AP