CVS Health Corp exceeds analyst estimates for third quarter earnings and sales.
The U.S. retail pharmacy chain on Friday raised its forecast for the full year.
CEO Larry Merlo is expected to step down in February next year.
CVS Health Corp. (NYSE: CVS) on Friday announced its financial results, which exceeded analysts’ third quarter earnings and sales estimates for the fiscal year. The company attributed its combative performance to robust demand for COVID-19 testing. CVS Health also raised its guidance for the full year on Friday.
Pre-IPO trading on Friday saw a 2.5% increase in the number of shares in the company. So far this year, CVS Health Corp has still lost 9% on the stock market, but has recovered by almost 30% since its year-to-date low in March. Confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you make the right choice.
CVS Health financial results for Q3 compared to analyst estimates
CVS stated that its net profit for the third quarter was £930 million, or 70.67 pence per share. In the same quarter last year, it reported higher net profit of £1.16 billion or 89 pence per share.
On an adjusted basis, the U.S. healthcare company earned £1.26 in the final quarter, exceeding the expert forecast of £1.10 per share according to FactSet. In the previous quarter (Q2), CVS had reported a net profit of £2.27 billion according to the report published in the first week of August.
In terms of revenues, CVS Health recorded revenues of £50.95 billion in the third quarter. This compares to revenues capped at a lower level of £49.25 billion. According to FactSet, analysts had expected slightly lower revenues of £50.63 billion for the retail pharmacy chain in the third quarter.
CEO Larry Merlo to step down in February next year
CEO Larry Merlo commented on the results report on Friday and said
“Since March, we have opened more than 4,000 COVID-19 test sites across the country and performed over six million tests. We are helping companies and universities reopen safely, and we were recently selected to perform COVID-19 vaccination in long-term care facilities”.
Merlo is scheduled to step down next February, and Aetna’s Managing Director Karen Lynch will assume the role of President and CEO of CVS.
For the full year, CVS now forecasts a decline in adjusted earnings per share in a range of £5.59 to £5.66 versus the FactSet consensus of £5.49 per share.
At the time of writing, the Woonsocket-based pharmacy chain has a market capitalisation of £66.28 billion and a price-earnings ratio of £10.59.