CVS Health shares rose on Wednesday after the company raised its full-year outlook, following second-quarter earnings that beat Wall Street’s expectations.
CVS reported adjusted earnings of $2.58 per share, beating the $1.85 expected by analysts in a FactSet poll. Revenue grew over 7% to $106.1 billion, above the $100.03 billion consensus estimate.
CVS now expects at least $414 billion in revenue and adjusted earnings of $7.90 to $8.10 per share for the year. This is up from its previous forecast of at least $405 billion in revenue and $7.30 to $7.50 per share in earnings. Wall Street had projected $408.82 billion in revenue and $7.45 per share in earnings.
CVS also announced a new partnership with Eli Lilly to give customers access to the drugmaker’s GLP-1 medications, Zepbound and Foundayo. Patients will be able to see pricing options in the CVS Health app by the fourth quarter, and same-day pickup may be available at CVS pharmacies.
CVS shares climbed 5.1% in premarket trading on Wednesday, beating the broader market’s gains.
CVS Health has performed well this year, bouncing back from earlier cost pressures related to its Medicare Advantage business. Before Wednesday’s report, shares were already up nearly 32% for the year, far outpacing the broader market.
Before the results, UBS said investors might see growth in two main areas: health services, which includes Caremark, and health care benefits, which covers Aetna. UBS noted that CVS usually gives cautious forecasts, so an increase was likely after a strong second quarter. The firm also mentioned a $500 million challenge in the health services outlook, but said management’s positive tone showed confidence in the business’s direction.
Wednesday’s results beat both CVS’s previous guidance and Wall Street’s expectations, adding to the full-year earnings outlook increase the company announced in May.
