CVS Well being beat second-quarter expectations, however the healthcare big’s revenue slipped as pricing stress damage the pharmacy enterprise and better medical prices hit the medical health insurance aspect.
The corporate additionally booked a pre-tax restructuring payment of $496 million within the quarter and reaffirmed its outlook for the 12 months, which it minimize in Might.
The pharmacy chain, pharmacy advantages supervisor and insurer mentioned Wednesday that it reported adjusted earnings of $2.21 per share within the quarter ended June 30. Whole income grew 10% to $88.92 billion, however web revenue fell 37% to $1.9 billion.
Analysts had anticipated, on common, earnings of $2.12 per share on $86.41 billion in income, in line with FactSet.
CVS Well being Corp. of Woonsocket, Rhode Island, operates one of many nation’s largest pharmacy chains with almost 10,000 retail places. It operates prescription drug plans for giant purchasers reminiscent of insurance coverage corporations and employers by means of a big pharmacy profit administration firm.
It additionally supplies medical health insurance to greater than 25 million folks by means of its Aetna subsidiary.
The corporate mentioned it nonetheless expects adjusted earnings to be between $8.50 and $8.70 a share this 12 months.
Analysts anticipate earnings of $8.58 per share.
Shares of the corporate had been up about 2% in pre-market buying and selling.