CVS Health Q1 Earnings Beat Street Expectations, Raises FY22 Adjusted EPS Forecast

CVS Health Corp's CVS Q1 sales increased 11.2% Y/Y to $76.83 billion, beating the consensus of $75.39 billion.
Adjusted operating income increased 6.6% to $4.48 billion primarily due to increased prescription and front store volume, including the sale of COVID-19 OTC test kits and the impact of COVID-19 vaccinations in the Retail/LTC segment.
Prescriptions filled increased 5.1% Y/Y on a 30-day equivalent basis to 394.6 million (lower than 419 million in Q4), primarily driven by COVID-19 vaccinations.
The company administered more than six million COVID-19 tests and over eight million COVID-19 vaccines in Q1, even as people getting COVID boosters slowed down and the U.S. reported a drop in testing.
The decline in demand for COVID products was offset by membership growth in its healthcare benefits segment, which offers various insurance products and services. The segment sales increased 12.8% to $23.12 billion.
Adjusted EPS increased 8.8% to $2.22, beating the consensus of $2.15.
Outlook: CVS Health revised its FY22 GAAP EPS guidance to $6.93 - $7.13 from $7.04 - $7.24. It raised the adjusted EPS outlook to $8.20 - $8.40 from $8.10 - $8.30, compared to the consensus of $8.27.
The company also confirmed its full-year 2022 cash flow from operations guidance of $12.0 billion - $13.0 billion.
Price Action: CVS shares are up 1.74% at $97.65 during the premarket session on the last check Wednesday.
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