CVS Health topped second-quarter expectations, but the health care giant’s profit sank as pricing pressure hurt its drugstore business and rising medical costs hit the health insurance side
FILE - A sign marks a CVS branch on Tuesday, May 16, 2023, in Pasadena, Calif. CVS Health reports earnings on Wednesday, Aug. 2 (AP Photo/Marcio Jose Sanchez, File)
The Associated Press
CVS Health topped second-quarter expectations, but the health care giant's profit sank as pricing pressure hurt its drugstore business and rising medical costs hit the health insurance side.
The company also booked a $496 million, pretax restructuring charge in the quarter and reaffirmed a forecast for the year that it had cut in May.
The drugstore chain, pharmacy benefit manager and insurer said Wednesday that it posted adjusted earnings of $2.21 per share in the quarter that ended June 30. Total revenue grew 10% to $88.92 billion, but net income plunged 37% to $1.9 billion.
Analysts expected, on average, earnings of $2.12 per share on $86.41 billion in revenue, according to FactSet.
Woonsocket, Rhode Island-based CVS Health Corp. operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It runs prescription drug plans for big clients like insurers and employers through a large pharmacy benefit management business.
It also provides health insurance for more than 25 million people through its Aetna arm.
The company said it still expects adjusted earnings this year to range between $8.50 and $8.70 per share.
Analysts forecast earnings of $8.58 per share.
Shares of the company rose nearly 2% in premarket trading.
