CVS Health Shares Rise After Earnings And Revenue Beat Estimates

CVS Health Corp. shares rose 1.1% in Tuesday premarket trading after the pharmacy chain reported second-quarter earnings and revenue that beat estimates. Net income for the quarter was $1.01 billion, or $1.07 per share, up from $924.0 million, or 86 cents per share, for the same period last year. Adjusted EPS was $1.33, beating the $1.31 FactSet consensus. Revenue for the quarter totaled $45.7 billion, beating the $45.4 billion FactSet consensus. Pharmacy same-store sales fell 2.8%, impacted by about 410 basis points by recent generic introductions. Front-of-store same-store sales fell 2.1%, impacted by softer traffic and "efforts to rationalize promotional strategies." The company revised its guidance, expecting full-year EPS of $4.92 to $5.02 versus previous guidance of $5.02 to $5.18. Adjusted EPS is expected to be $5.83 to $5.93 versus a previous $5.77 to $5.93. The FactSet consensus is $5.87. Third-quarter EPS is expected to be $1.20 to $1.23, and adjusted EPS is expected to be $1.47 to $1.50. The FactSet consensus is $1.63. CVS shares are up 0.3% for the year so far while the S&P 500 index is up 10.8% for the period.