CVS Health Posts Higher 2Q Profit, Benefiting From Insurance Business
August 05 2020 - 07:21AM
Dow Jones News
By Dave Sebastian
CVS Health Corp. said its second-quarter profit rose as its
insurance arm benefited from deferred elective procedures amid the
Covid-19 shelter-in-place measures, though it also had lower new
therapy prescriptions.
The pharmacy chain, which also owns insurance giant Aetna, on
Wednesday posted a net profit of $2.98 billion, or $2.26 a share,
compared with $1.94 billion, or $1.49 a share, in the same period
last year.
Adjusted earnings were $2.64 a share. Analysts polled by FactSet
were looking for adjusted earnings of $1.91 a share.
The Woonsocket, R.I.-based company reported sales of $65.34
billion, up from $63.43 billion in the year-ago period. Analysts
polled by FactSet were expecting $64 billion.
Sales in the company's health-care benefits segment, which
includes Aetna, rose 6.1% to $18.47 billion. It reported a
medical-loss ratio, or the share of premiums the insurer pays out
in claims, of 70.3%.
Sales in its pharmacy-services segment rose slightly to $34.89
billion, partially offset by lower provider visits during the
quarter. Its retail segment sales rose 1% to $21.66 billion, though
prescriptions filled declined 1.1% on a 30-day equivalent
basis.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
August 05, 2020 07:06 ET (11:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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