People walk to the CVS drugstore in the Manhattan neighborhood of New York.
Shannon Stapleton Reuters
CVS Health reported a strong first quarter on Tuesday and raised its forecast for the full year as customers came to its stores for vaccinations, tests and prescriptions for Covid-1
The company is a major supplier of Covid-19 vaccines and recently began offering same-day appointments for the shots.
The company’s shares have increased by nearly 2% in pre-trading.
Here is what the company reported for the fiscal first quarter ended March 31, compared to what analysts had expected, based on a survey by analysts at Refinitiv:
- Adjusted earnings per share: $ 2.04 versus $ 1.72 is expected
- Revenue: $ 69.1 billion versus $ 68.39 billion
The healthcare company and drugstore chain reported net earnings of $ 2.22 billion, or $ 1.68 per share, compared to $ 2.01 billion, or $ 1.53 per share, a year earlier.
Excluding items, it earned $ 2.04 per share, more than the $ 1.72 per share expected by Refinitiv analysts.
Revenue rose to $ 69.1 billion from $ 66.8 billion a year earlier. This exceeded analysts’ expectations of $ 68.39 billion.
The company raised its guidelines for the year. He said he expects earnings in 2021 to range between $ 6.24 and $ 6.36 per share, and after adjustments between $ 7.56 and 7.68 per share.
He reiterated that his projected cash flow from operations throughout the year is expected to range from $ 12 billion to $ 12.5 billion.
The drugstore chain faces challenging year-on-quarter comparisons in its retail business. During the period a year earlier, customers rushed to fill out prescriptions earlier and stock up on other health and personal care items before ordering accommodation on site. Virtual visits and home delivery of recipes jumped – and customers threw more items in front of the store, such as soap and shampoo in their shopping baskets and online.
CVS reported on Tuesday that it had lower sales than previous stores in the first quarter of this year due to accelerated demand in March 2020 and a weak season of coughs, colds and flu.
Sales in the same store in pharmacies and in stores increased by only 0.4% compared to a growth of 9% a year earlier. Sales of the same store for the previous store decreased by 11.4%.
However, he said his revenue has increased from Covid-19 testing and vaccinations. CVS took photos in its stores and long-term care facilities. It says that the completed recipes are approximately the same as a year earlier on a 30-day equivalent.
As of the end of Monday, CVS shares have risen nearly 14% this year. On Monday, they closed at $ 77.69, with the company’s market value reaching $ 101.97 billion.
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