A buyer exits a CVS Health Corp. retailer in Oakland, California, U.S., on Friday, Aug. 2, 2019.
Michael Short | Bloomberg | Getty Images
CVS Health on Wednesday reported second-quarter earnings and revenue that beat expectations, as the company slashes costs and lays off hundreds of staff.
CVS has carried out a cost-cutting program as it pushes deeper into health-care providers in the wake of its $8 billion acquisition of Signify Health and its $10.6 billion buy of Oak Street Health.
Part of that effort requires cutting 5,000 jobs, CNBC reported Tuesday.
Here’s what CVS recorded for its second quarter in contrast with Wall Street’s expectations, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $2.21 adjusted, vs. $2.11 anticipated
- Revenue: $88.9 billion, vs. $86.5 billion anticipated
The health-care large posted internet revenue of $1.91 billion for the quarter, or $1.48 per share, a 37% decline from the similar interval in 2022 when CVS reported internet revenue of $3.04 billion, or $2.29 per share. Excluding one-time objects, CVS reported $2.21 per share for the interval.
The company booked revenue of $88.9 billion for the quarter, a ten% enhance in contrast with the year-ago interval.
CVS maintained its full-year adjusted earnings steering of $8.50 to $8.70 per share, after slashing its projections by 20 cents final quarter as a consequence of costs related to its current acquisitions.
The company’s well being providers phase generated $46.22 billion in revenue, a 7.6% enhance in contrast with the similar quarter in 2022. The division consists of the pharmacy profit supervisor CVS Caremark and health-care providers delivered in medical clinics, by way of telehealth and at dwelling.
CVS’ retail pharmacy division generated $28.78 billion in gross sales, additionally 7.6% greater than the yr ago-period, pushed by elevated prescription quantity. The variety of prescriptions crammed rose 2.4% on a 30-day foundation, excluding Covid-19 vaccinations. Same-store prescription quantity jumped practically 5%, excluding Covid vaccines.
The company’s medical health insurance phase generated $26.75 billion, a 17.6% enhance over the second quarter of 2022. That division consists of Aetna plans for the Affordable Care Act, Medicare Advantage, Medicaid, and dental and imaginative and prescient.
The insurance coverage phase’s medical profit ratio — a measure of whole medical bills paid relative to premiums collected — rose to 86.2% in the quarter, in contrast with 82.7% in the year-ago interval. A decrease ratio sometimes signifies that the company collected extra in premiums than it paid out in advantages, leading to greater profitability.
