CVS posts strong 2Q, with virus delaying elective procedures

Cover Image
Photo credit Customers line up at a drive thru self-swab coronavirus test site at a local CVS Pharmacy Sunday, June 14, 2020, in Phoenix. (AP Photo/Ross D. Franklin)
By The Associated Press

CVS Health is reporting surprisingly strong second-quarter earnings in part due to postponed elective medical procedures during the pandemic, and it raised its profit expectations for the year.

For the three months ended June 30, CVS earned $2.99 billion, or $2.26 per share. A year earlier the Woonsocket, Rhode Island, company earned $1.93 billion, or $1.49 per share.

Adjusted for one-time gains and costs, earnings were $2.64 per share. That's better than the $1.93 per share analysts polled by Zacks Investment Research predicted.

CVS said Wednesday that the COVID-19 pandemic resulted in lower benefit costs due to the deferral of elective procedures and other discretionary use of its health care benefits segment.

Revenue was $65.34 billion, topping the $64.09 billion Wall Street expected.

CVS now anticipates full-year adjusted earnings between $7.14 and $7.27 per share. It previously predicted $7.04 to $7.17 per share.

Shares are sharply higher before the opening bell.