CVS Health Beats Expectations in Q1 Due to COVID-19 Fears
CVS Health (NYSE: CVS) reported its first-quarter results before the market opened on Wednesday, announcing revenue up 8.3% year over year to $66.8 billion. That well exceeded the average analysts' estimate of $66.04 billion. On the bottom line, the healthcare giant posted GAAP earnings per share (EPS) of $1.53, and adjusted EPS of $1.91, topping the analysts' consensus forecast of $1.63.
The company reported that revenue for its pharmacy services segment increased by 4.2% year over year in Q1 to nearly $35 billion. Revenue from the company's retail/long-term care segment jumped 7.7% to $22.7 billion. Both segments saw higher sales in part as a result of consumers refilling prescriptions early and more frequently choosing to buy 90-day supplies of drugs in preparation for pandemic-related lockdowns. Its retail business also benefited from increased consumer health and general merchandise sales, which were also driven primarily by the COVID-19 pandemic.
Image source: CVS Health.
Source Fool.com
