CVS Health 3Q Revenue Beats Estimate

EarningsReuters

CVS Health, the second-largest U.S. drugstore chain by store count, reported better-than-expected quarterly net revenue, helped by strong demand for its pharmacy benefit management services and its acquisition of Omnicare.

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CVS's results come in the same week that larger rival Walgreens Boots Alliance said it would buy Rite Aid for $9.4 billion in a deal which would combine two of the three largest U.S. drugstore operators.

CVS said pharmacy same-store sales grew 4.6 percent in the third quarter ended Sept. 30.

The company processed 229 million claims in its pharmacy benefits business, an increase of 9.3 percent. The business was boosted by more specialty pharmacy claims.

CVS expanded its specialty pharmacy business, which provides drugs for expensive chronic conditions, with its $10.1 billion acquisition of Omnicare in August.

Omnicare also supplies prescription medicines to nursing and other healthcare facilities.

Net income attributable to CVS rose to $1.25 billion, or $1.11 per share, from $948 million, or 81 cents per share.

Excluding items, it earned $1.28 per share.

Net revenue rose 10.3 percent to $38.64 billion.

Analysts on average had expected earnings of $1.29 per share on revenue of $37.89 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D'Souza)

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