CVS Health Fourth Quarter Performance Gets A Boost From COVID-19 Vaccinations, Reaffirms FY22 Outlook

CVS Health Corporation's CVS Q4 sales increased 10.1% Y/Y to $76.60 billion, beating the consensus of $75.55 billion.

• Adjusted operating income increased 40.8% to $4.15 billion primarily due to increased prescription and front store volume and the administration of COVID-19 vaccinations in the Retail/LTC segment, and growth in specialty pharmacy.
• Prescriptions filled increased 11.6% Y/Y to 419.8 million, primarily driven by COVID-19 vaccinations.
• CVS said its medical benefit ratio (MBR), or the percentage of premiums paid for medical services, rose to 87% from 86.7%.
• Adjusted EPS increased 52.3% to $1.98, beating the consensus of $1.83. For FY21, adjusted EPS of $8.40 came above the management guidance of $8.33 - $8.38.
• FY21 Outlook: CVS Health confirmed its FY22 GAAP EPS of $7.04 - $7.24 and adjusted EPS of $8.10 - $8.30, compared to the consensus of $8.28. 
• The Company also revised its full-year 2022 cash flow from operations guidance to $12.0 billion - $13.0 billion from $12.5 billion - $13.0 billion.
• Price Action: CVS shares are down 0.43% at $110.35 during the premarket session on the last check Wednesday.