CVS Health Raises Annual Guidance After Upbeat Q3 Earnings

CVS Health Corp's (NYSE: CVS) Q3 sales increased 10% Y/Y to $81.2 billion, beating the consensus of $76.75 billion.
Prescriptions filled increased 1.8% on a 30-day equivalent basis, driven by increased utilization, partially offset by decreased COVID-19 vaccinations.
Excluding the impact of COVID-19 vaccinations, prescriptions filled increased 3.6% on a 30-day equivalent basis.
The insurance business' medical benefit ratio, or spending on claims against premiums earned, was 83.5%, compared with 85.8% a year earlier when COVID cases had surged due to the Delta wave.
Revenue from the insurance and pharmacy benefit management businesses rose around 10% each, while its retail and pharmacy business sales were up about 7%.
Total pharmacy claims processed increased 3.6%, primarily driven by net new business and increased utilization, partially offset by a decrease in COVID-19 vaccinations.
The company also reported a $5.2 billion charge in the third quarter for a settlement relating to its role in the opioid crisis. According to CVS, the settlement resolves all existing claims against the company relating to opioid distribution.
Adjusted EPS was $2.09, beating the consensus of $1.99.
Outlook: CVS Health raised the adjusted EPS outlook to $8.55-$8.65, up from the previous guidance of $8.40 - $8.60, compared to the consensus of $8.55.
The company also raised FY22 cash flow from operations guidance to $13.5-14.5 billion compared to $12.5 - $13.5 billion expected earlier.
Price Action: CVS shares are up 0.67% at $95.25 during the premarket session on the last check Wednesday.
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