CVS Health first-quarter profit beats on COVID-19 stockpiling

CVS Health first-quarter profit beats on COVID-19 stockpiling

CVS Health Corp on Wednesday posted first-quarter profit above Wall Street estimates, as its pharmacy benefits management business and its drugstores benefited from customers stockpiling medicines due to COVID-19 lockdowns.

Outbreak of the coronavirus disease (COVID-19) in  Oakland, California
People wait in line practicing social distance at Target CVS Pharmacy as the spread of coronavirus disease (COVID-19) continues, in Oakland, California, U.S., April 7, 2020. REUTERS/Shannon Stapleton

REUTERS: CVS Health Corp on Wednesday posted first-quarter profit above Wall Street estimates, as its pharmacy benefits management business and its drugstores benefited from customers stockpiling medicines due to COVID-19 lockdowns.

Sales at CVS's retail unit rose 77per cent to US$22.75 billion, helped by strength in its pharmacies as well as its front-end stores that sell over the counter consumer health products.

The company said its pharmacies benefited as consumers refilled prescriptions early as they prepared for the COVID-19 pandemic.

Excluding items, CVS earned US$1.91 per share, beating estimates of US$1.63 per share, according to IBES data from Refinitiv.

Sales rose 8.3per cent to US$66.76 billion, beating estimates of US$64.10 billion.

The company maintained its 2020 adjusted profit forecast.

Net income rose to US$2.01 billion, or US$1.53 per share, in the quarter ended March 31, from US$1.42 billion, or US$1.09 per share, a year earlier.

(Reporting by Manas Mishra and Trisha Roy in Bengaluru; Editing by Shinjini Ganguli and Supriya Kurane)

Source: Reuters

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