CVS Health posted second quarter results satisfactory enough to prompt a guidance upgrade even if the division including stores produced somewhat soft results.
For the three months ended June 30, CVS posted income from continuing operations of $1.94 billion, or $1.49 per diluted share, versus a loss from continuing operations of $2.56 billion, or $2.52 per diluted share, in the year-earlier quarter. Adjusted income from continuing operations was $2.46 billion, or $1.89 per share, versus adjusted income from continuing operations of $1.72 billion, or $1.69 per share, in the year-prior quarter.
CVS beat a MarketBeat-published analyst consensus adjusted earnings per share estimate of $1.70 for the quarter.
Total revenues were $63.43 billion versus $46.92 billion in the quarter a year before, with product sales down to $45.53 billion from $45.65 billion in the period year over year. Operating income was $3.33 billion versus an operating loss of $1.37 billion in the period a year previous.
In the retail/LTC segment, revenues were $21.45 billion versus $20.67 billion in the quarter a year earlier. Operating income for the segment was $1.55 billion versus an operating loss of $2.23 billion in the period a year prior. Front store comparable sales, including general merchandise such as home products, gained 2.9% in the quarter year over year.
Larry Merlo, CVS president and CEO, stated, “We posted strong second quarter results, with all of our businesses performing at or above expectations. These results demonstrate our ability to execute on our strategic priorities to accelerate enterprise growth as we seek to fundamentally transform the consumer health experience. Given our performance to date and our expectations for the remainder of the year, we are raising and narrowing our adjusted EPS guidance range to $6.89 to $7.”