Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

CVS tops profit estimates on Aetna strength

Published 11/06/2019, 07:02 AM
Updated 11/06/2019, 07:04 AM
CVS tops profit estimates on Aetna strength

(Reuters) - CVS Health Corp (N:CVS) posted a better-than-expected quarterly profit on Wednesday, boosted by its pharmacy benefit management unit and the Aetna (NYSE:AET) health insurance business it acquired last year.

Shares of the company rose 3% in premarket trading after the company also raised its 2019 adjusted profit forecast range to $6.97 to $7.05 per share, from $6.89 to $7.00.

Sales in the company's pharmacy services unit increased 6.4% to $36.02 billion in the third quarter, helped by a rise in prices of branded drugs and increased claims.

The company, which also runs drugstores, closed its $69 billion purchase of Aetna in November 2018.

Sales in its health care benefits business, which houses Aetna, soared to $17.18 billion, helped by lower-than-expected medical costs. The unit reported a medical benefit ratio of 83.3%, compared with estimates of 84.3% according to four analysts polled by Refinitiv.

CVS Health's net profit rose 10.1% to $1.53 billion, or $1.17 per share, in the quarter ended Sept. 30.

Excluding items, the company earned $1.84 per share, above analysts' estimates of $1.77.

Revenue jumped 36.5% to $64.81 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.