CVS Health Corp (CVS) posted earnings results for the third quarter of 2018 on Tuesday, November 6, before the opening bell. Net revenues improved 2.4% to $47.3 billion, while GAAP diluted EPS from continuing operations was $1.36. Adjusted earnings was $1.73 a share.
The Street had expected earnings of $1.71 per share on revenues of $47.1 billion, which the company beat. Shares jumped 2.59% in premarket trade from Monday’s close of $73.69 after the earnings announcement.
With this result, CVS Health has consistently topped estimates for five quarters in a row.
Same-store sales increased 6.7% and pharmacy same-store sales increased 8.7% in the three months ended September 30, 2018. Same-store prescription volume improved 9.2%, while Pharmacy Services claims grew of 5.7%.
Net income for the period rose 8.2% to $1.4 billion.
Outlook:
CVS Health continues to expect full-year GAAP consolidated operating profit to decline 39-41%, due to the goodwill impairment in Q2. Adjusted consolidated operating profit is expected to be down 0.75% to up 0.75% for the full year. The company continues to expect GAAP diluted earnings of $1.40-1.50 per share and adjusted earnings of $6.98-7.08 a share. Cash flow from operations is touted to hit $9.0 billion, with free cash flow of about $7.0 billion.
