What's Going On With CVS Health Stock?

CVS Health Corp CVS shares are trading higher Wednesday after the company reported better-than-expected financial results and raised its full-year earnings guidance above analyst estimates.

What Happened: CVS said third-quarter revenue increased 10% year-over-year to $81.16 billion, which beat average analyst estimates of $76.75 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $2.09 per share, which beat average estimates of $1.99 per share.

"We delivered another outstanding quarter, and have raised full-year guidance as a result. We continue to execute on our strategy with a focus on expanding capabilities in health care delivery, and the announced acquisition of Signify Health will further strengthen our engagement with consumers," said Karen Lynch, president and CEO of CVS.

CVS raised its full-year adjusted earnings guidance from a range of $8.40 to $8.60 per share to a range of $8.55 to $8.65 per share versus average estimates of $8.55 per share.

CVS now expects full-year cash flow from operations to be in a range of $13.5 billion to $14.5 billion, up from a range of $12.5 billion to $13.5 billion.

See Also: CVS Health: Q3 Earnings Insights

What Else Is Happening: CVS, Walgreens Boots Alliance Inc WBA and Walmart Inc WMT have agreed to pay approximately $13.8 billion to settle thousands of U.S. lawsuits related to the alleged mishandling of opioids.

CVS on Wednesday announced that it has agreed to pay approximately $5 billion over the next ten years, beginning in 2023. CVS said it will continue to defend against any litigation that the final agreement does not resolve.

CVS Price Action: CVS has a 52-week high of $111.25 and a 52-week low of $86.28.

The stock was up 4.78% at $99.14 at time of publication, according to Benzinga Pro.

Photo: Jernej Furman from Flickr.