CVS Credits ‘Pandemic Response’ To Q3 Profits Boost

In an economy ravaged by COVID-19, CVS Health Corp. has delivered a third-quarter report well over Wall Street expectations. CEO Larry Merlo attributed the achievement to CVS’s participation in large-scale COVID-19 testing efforts and to a diversified product base.

“We've opened more than 4,000 COVID-19 test sites across the country since March, and have administered over six million tests," Merlo said, The Street reports. "We're helping businesses and universities safely reopen and we were recently selected to administer COVID-19 vaccinations in long-term care facilities. We'll continue to play a vital role in our nation's recovery thanks to the tireless efforts of our nearly 300,000 employees."

CVS expects to continue working on the forefront of virus response, recently putting out the call for 15,000 new workers to help with vaccine distribution.

Merlo has led the group since 2011 but will be retiring in February 2021, replaced by Karen Lynch. Lynch currently leads CVS’s Aetna Healthcare department.

The numbers themselves are mixed, but with other companies posting crippling losses, holding steady with minor gains is an accomplishment. CVS’s adjusted earnings fell 10% to $1.66 per share but had been expected to fall dramatically further to $1.33.

Group revenues actually increased by 3.5% to $67.1 billion, $530 million better than projected. Same-store sales doubled predictions to rise 5.7% since last year.

The strong Q3 performance led CVS to raise its projections for the rest of the year. It now expects to see adjusted earnings between $7.33 and $7.45 per share, up from previous estimates of $7.14 to $7.27.

"Our strong third-quarter results demonstrate continued execution of our long-term strategic plan that is transforming the way health care is delivered," said Merlo. "We're developing holistic and innovative solutions that meet the needs of our customers in the community, in the home or in the palm of their hand."