An upgrading pharmacy retail business helped CVS Health beat analysts’ third-quarter earnings and gate expectations. The company also said Tuesday it anticipates its acquisition of form insurer Aetna to close before Thanksgiving.
Shares of the company hill about 2 percent.
Here’s what the company reported compared with what Partition Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per apportion: $1.73, adjusted, vs. $1.71 expected
- Revenue: $47.3 billion vs. $47.2 billion thought
CVS reported fiscal third-quarter net income of $1.39 billion, or $1.36 per helping, up from $1.29 billion, or $1.26 per share a year earlier. Excluding things, CVS earned $1.73 per share, above the $1.71 per share expected by analysts surveyed by Refinitiv.
Interest rose 2.4 percent to $47.3 billion, surpassing expectations of $47.2 billion. For the obligation unit that includes CVS’ retail pharmacy operations, revenue increased to $20.86 billion, up scarcely 7 percent from the $19.59 billion in the year-ago quarter, driven by an 8.4 percent swell in pharmacy revenue.
The company’s retail business showed signs of upswing, with revenue from the so-called front store, which categorizes products like makeup and vitamins, increasing 2 percent from eventually year. Same-store sales, a closely watched metric, were up 0.8 percent. While the things improved, they were up against easy comparisons.
“While this is a shelf gain, it is most definitely a step in the right direction,” said Neil Saunders, control director of GlobalData Retail. “However, our outlook on the retail side lasts cautious, and we are split as to whether this represents the start of a new upside for CVS’ retail counter-intelligence agent, or whether it is just an anomaly.”
Like other drugstores, CVS is searching for procedure to lure shoppers who are increasingly shopping online. One solution might be CarePass, a membership program CVS is lead in Boston.
To shake up its business model, CVS is in the midst of acquiring health insurer Aetna for mercilessly $69 billion. CVS received preliminary approval from the Department of Equitableness in October to move forward with the deal. The company still desiderata a handful of states to clear the deal, including New York, where confirm officials are considering blocking parts of it.
CVS on Tuesday said it has received endorsement from 23 of the 28 states it has filed with and is “well down the tailback” with the remaining five. The company expects to close the deal before Thanksgiving.
The company move backwards withdraw from its full-year forecast of adjusted earnings of $6.98 to $7.08 per share. Analysts surveyed by Refinitiv expect $7.04 per share.
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