CVS reported quarterly earnings of nearly $3 billion as all of its business segments, from health plans and pharmacies to in-store clinics, grew, the company said Wednesday.
CVS on Wednesday reported net income of $2.95 billion, or $2.23 a share, compared with $2.78 billion, or $2.10 cents, in the prior quarter. CVS sales rose 11% to $80.6 billion in the company’s second quarter.
CVS, which owns the nation’s third-largest health insurer Aetna, said revenue growth was boosted by health plan membership, which grew by 922,000 members to 24.4 million as of June 30, “reflecting increases across all product lines.” the company announced in its second quarter earnings report.
CVS Health’s earnings contributed to the company’s decision to raise its financial outlook for the rest of 2022 with adjusted earnings per share now expected to be in the range of $8.40 to $8.60, compared with a previous forecast of $8.20 to $8.40.
“Despite the challenging economic environment, our diversified business model contributed to strong results this quarter, with significant revenue growth across all of our business segments,” said CVS Health CEO Karen S. Lynch. “The continued success of our core businesses has accelerated our strategy to expand access to healthcare and help consumers navigate to the best site of care.”
The strategy to add more health care services helped drive revenue up 6.3% to $26.3 billion in the company’s retail and long-term care segment “primarily driven by increased prescription volume and front-end store, including the sale of over the counter covid-19 test kits and the impact of a prolonged cough, cold and flu season compared to last year, as well as pharmacy brand inflation,” the company said in its second-quarter earnings report.
Meanwhile, CVS said it paid down $1.5 billion of long-term debt in the quarter “while returning $740 million to shareholders through dividends during the quarter ended June 30, 2022.”
Debt worried Wall Street analysts and investors when CVS bought Aetna nearly four years ago, but CVS has “paid down $22.5 billion in net long-term debt” since the acquisition closed in November 2018, CVS said on Wednesday.