CVS Health Q3 Earnings Helped By COVID-19 Vaccinations; Raises FY21 Earnings Outlook

CVS Health Corporation's CVS Q3 sales increased 10% Y/Y to $73.79 billion, beating the consensus of $70.49 billion, helped by filling more prescriptions and giving more Covid-19 vaccines.
Adjusted operating income increased 12.5% to $4.07 billion primarily due to the administration of COVID-19 vaccinations, diagnostic testing, and increased front store volume and growth in specialty pharmacy.
CVS administered more than 8 million COVID-19 tests and more than 11 million COVID-19 vaccines nationwide in Q3.
Prescriptions filled increased 8.0% Y/Y, primarily driven by COVID-19 vaccinations.
CVS said its medical benefit ratio (MBR), or the percentage of premiums paid for medical services, rose to 85.8% from 84%. A lower MBR is better for health insurers as it signals a tight rein on medical costs.
Adjusted EPS increased 18.7% to $1.97, beating the consensus of $1.78.
FY21 Outlook: CVS Health raised the adjusted EPS outlook to $7.90 - $8.00 from $7.70 - $7.80 (consensus $7.79).
The Company also raised FY21 cash flow from operations guidance to $13.0 billion - $13.5 billion from $12.5 billion - $13.0 billion.
Price Action: CVS shares traded lower at 90.31 premarket on Tuesday.

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