CVS Gains on Q4 Earnings Beat

Henrietta Strickland
February 14, 2020

CVS Health reported net income of $1.75 billion, or $1.33 a share, in the quarter ended December 31, compared to a net loss of $419 million, or $0.37 cents a share, in the year-ago period, which included a $2.2 billion charge related to the Aetna acquisition.

As we work to transform the way health care is delivered to millions of Americans, we are driving continued business performance and generating positive momentum across the enterprise.

Alec Cunningham has been appointed evp/chief operating officer for the Aetna business and will lead an expanded organization that will focus on Medicare Advantage and government programs overall. "We're using our unmatched capabilities to create a higher-quality, simpler and more affordable health care experience, which benefits patients, clients and consumers and positions the company for continued success".

Alan Lotvin, evp/CVS Health, has been appointed president of CVS Caremark, and will also have oversight of CVS Specialty and CVS Kidney Care.

CVS said its revenue rose 22.9% to $66.89 billion from the same period the year before as revenue from premiums shot up.

For Q4 2019, CVS ended the year with strong performances in key metrics, including total revenues that rose almost 23% and an operating income that hit $3 billion. That compares with a loss of $419 million, or a loss of 37 cents a share, during the same quarter in 2018. The company's pharmacy-services business is expected to be a critical plank of that growth, with projected 2020 sales of $137.50 billion to $139.45 billion.

For 2020, CVS expects per-share earnings from continuing operations of $5.47 to $5.60, or $7.04 to $7.17 on an adjusted basis.

Shares of CVS were last seen up about 1.5% at $74.94, in a 52-week range of $51.72 to $77.03.

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand. CVS Health retail segment primarily deals with prescription refills and general merchandise.

Other reports by Click Lancashire

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