The Colorado Springs Gazette final

CVS Health tops 2Q forecasts

Vaccines and a return to normal care levels helped push CVS Health past Wall Street’s second-quarter expectations, but the resurging COVID-19 pandemic is clouding the health care giant’s 2022 expectations.

Chief Financial Officer Shawn Guertin told analysts Wednesday that the company always aims for double-digit growth in adjusted earnings per share. But he wouldn’t repeat that goal for next year, given rising COVID-19 cases and falling vaccination rates.

A more contagious variant of the virus that causes COVID-19 has led to soaring case counts over the past few weeks. Fewer people also are getting vaccines after an initial rush this year when they first became available to the general public.

Both of those variables could play a big role in CVS Health’s future performance. Vaccines and virus testing bring more revenue into the company’s drugstores, while a rise in costs to treat COVID-19 patients or a pullback in other care could affect the company’s insurance business.

Guertin didn’t offer a specific forecast for 2022 — companies normally don’t this early — but he did say his lower expectations have nothing to do with CVS Health’s core business performance. In the second quarter, CVS Health earned $2.78 billion, with adjusted earnings totaling $2.42 per share.

That topped the average analyst expectation of $2.07.

Revenue jumped 11% to $72.62 billion. CVS Health operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It also runs prescription drug plans for clients like insurers and employers through a large pharmacy benefit management business and sells insurance through its Aetna arm.

BUSINESS

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2021-08-05T07:00:00.0000000Z

2021-08-05T07:00:00.0000000Z

https://daily.gazette.com/article/281994675541046

The Gazette, Colorado Springs