CVS Reports Higher Revenue, Profit
November 06 2018 - 08:08AM
Dow Jones News
By Aisha Al-Muslim
CVS Health Corp. reported higher revenue in the latest quarter
as the retail pharmacy chain grew its network and got a boost from
an increase in same-store prescription volumes.
The Woonsocket, R.I.-based company's third-quarter revenue rose
2.4% to $47.3 billion, beating the $47.2 billion analysts polled by
Refinitiv were expecting.
Same-store sales grew 6.7%, beating the FactSet estimate of a
5.4% increase. Pharmacy same-store sales increased 8.7% and
same-store prescription volume grew 9.2%.
The company posted a profit of $1.39 billion, or $1.36 a share,
up from $1.29 billion, or $1.26 a share, a year earlier. Excluding
one-time items, adjusted earnings were $1.73 a share, ahead of the
consensus forecast of $1.71 a share.
For 2018, CVS reaffirmed its guidance for adjusted earnings per
share of $6.98 to $7.08.
Shares, which are up 10.3% in the past 12 months, rose 2.6% to
$75.58 in premarket trading Tuesday.
Last month, the Justice Department antitrust enforcers cleared
CVS's acquisition of Aetna Inc. after the companies took steps to
ease regulators' concerns, moving the nearly $70 billion deal a
step closer. CVS recorded $208 million in costs in the latest
quarter in connection with the Aetna deal.
The Justice Department had said that Aetna's announcement in
late September that it planned the divestitur e of its Medicare
drug business to WellCare Health Plans Inc. "would fully resolve
the Department's competition concerns."
The CVS-Aetna merger -- which brings together the giant
drugstore chain and pharmacy-benefit manager with the No. 3 health
insurer -- needs the approval from five more states to complete the
deal. So far, CVS said it has received approval from 23 of the 28
states needed. The transaction is expected to close before
Thanksgiving.
"We are well down the line with the remaining five" states, the
company said Tuesday.
CVS and Aetna operate in largely different businesses, with
their most direct overlap coming in selling plans under the
Medicare prescription-drug program, known as Part D.
Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com
(END) Dow Jones Newswires
November 06, 2018 07:53 ET (12:53 GMT)
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