CVS Health posted significant second quarter gains, although the retail division experienced a bit of coronavirus-associated drag on operating income.
Net income for the quarter was $2.99 billion, or $2.26 per diluted share, versus $1.93 billion, or $1.49 per diluted share, in the year-prior period. Adjusted for one-time events, company net income was $3.47 billion, or $2.64 per share, versus $2.46 billion, or $1.89 per share, in the quarter a year earlier.
CVS topped a Zacks Investment Research adjusted earnings per share analyst consensus estimate of $1.93.
Total revenues were $65.34 billion compared to $63.43 billion in the year-previous quarter. Operating income was $4.68 billion versus $3.33 billion in the period a year before.
For the CVS Retail/LTC division, total revenues were $21.66 billion, versus $21.45 billion in the year-past quarter. Front store revenues, including those from general merchandise sales, decreased 4.6% in the three months ended June 30, versus the quarter a year prior. The decrease was primarily due to reduced customer traffic in the segment’s retail pharmacies, CVS maintained, resulting from shelter-in-place orders associated with the pandemic.
Larry Merlo, CVS Health president and CEO, said, “We’re a health innovation company that is built to meet the evolving needs of the millions we serve every day. That’s been made clear as we continue to navigate the health, social and economic impacts of COVID-19. Our earnings in this environment demonstrate the strength of our strategy and the power of our diversified business model. The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important.”