CVS Health posted a strong first quarter as its drug stores saw a sales boost related to the COVID-19 pandemic.
Net income in the quarter was $2.01 billion, or $1.53 per diluted share, compared with $1.42 billion, or $1.09 per diluted share, in the period a year before. Adjusted for one-time charges, net income was $2.5 billion, or $1.91 per share, versus $2.11 billion, or $1.62 per share, in the year-previous period.
In the quarter, CVS exceeded a $1.63 earnings per adjusted share estimate published by MarketBeat.
Total revenues increased 8.3% to $66.76 billion from the year-prior quarter. Product sales increased to $47 billion from $43.34 billion in the period year over year. Operating income increased 28.6% to $3.46 billion.
In the Retail/LTC division, total revenues gained 7.7% to $22.75 billion from the quarter a year past. Front store comparable revenues, including those from general merchandise, advanced 8% in the period year over year, with the increase primarily driven by coronavirus-related supplies, the expansion of the company’s CarePass program and the impact of an additional day in the 2020 fiscal quarter.
Larry Merlo, CVS president and CEO, said, “When facing any health crisis, including this pandemic, we’re uniquely positioned to understand consumer and patient needs and how to address them. This includes increasing access to medicine and virtual care, and testing thousands for the virus every day to ready our country to reopen safely. We’re utilizing our innovation-driven health care model, scale and unique capabilities to benefit consumers across the health care system, and none of this could be done without the tireless dedication of our colleagues.”