Shares of CVS Health Corp (CVS) rose 0.7% in premarket trading on Wednesday following the company’s announcement of its second-quarter profit and revenue which surpassed expectations. CVS, a drug store chain and health care services company, demonstrated strength in the health care benefits business.
Net income for the second quarter was $1.90 billion, or $1.48 a share, down from $3.03 billion, or $2.29 a share, in the same period last year. However, when excluding nonrecurring items, such as a $496 million restructuring charge, adjusted earnings per share (EPS) reached $2.21, exceeding the FactSet consensus of $2.12.
Total revenue saw significant growth of 10.3% to $88.92 billion, surpassing the FactSet consensus of $86.41 billion. The increase in revenue can be attributed to a 17.6% rise in health care benefits revenue, as well as a 7.6% increase in revenue from both the health services and pharmacy and consumer wellness segments.
CVS affirmed its adjusted EPS guidance range of $8.50 to $8.70 for the year 2023. The company continues to focus on its restructuring plan aimed at improving efficiency, streamlining operations, and cutting costs. The plan is expected to be substantially completed by 2023.
Year to date, CVS shares have dropped by 20.7%, while the S&P 500 has advanced by 19.2%.