CVS Health posts higher Q4 profit owing to Covid vaccine demand

• The company reports Q4 net income of $1.31 billion, or 99 cents per share

• CVS's overall revenue increases by 10.1 % year on year

• The company administers more than 8 million Covid tests and more than 20 million Covid vaccinations

CVS Health Corp. (NYSE: CVS) reported stronger revenue in the fourth quarter, bolstered by demand for Covid vaccinations and at-home Covid testing during the time.

In the fourth quarter, it provided more than 8 million Covid tests and more than 20 million Covid vaccinations, while same-store sales increased 13.4 percent from a year ago.

Here's how the company performed in comparison to what Wall Street predicted:

Earnings per share: $1.98 adjusted vs. $1.93 anticipated

Revenue: $76.60 billion, compared to the projected $75.67 billion

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The company reported a fiscal fourth-quarter net income of $1.31 billion, or 99 cents per share, an increase from $973 million, or 74 cents per share, in the previous year.

According to the corporation, their net income from continuing operations was 98 cents. However, after adjustments, it earned $1.98 per share, which was more than the $1.93 per share projected by Refinitiv analysts polled.

“We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health,” said Karen S. Lynch, CVS Health President, and CEO, in a statement.

“That’s reflected in our performance, but more importantly in our potential” 

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CVS's overall revenue, which includes its health-insurance and pharmacy-services operations, increased by 10.1 percent year on year, the company said. 

The company's fourth-quarter earnings included a $1.4 billion impairment charge linked to the company's store closing strategy.

Full-year results

The company said total revenue climbed 8.7 % year on year to $292.1 billion while GAAP diluted earnings per share from continuing operations of $5.95 and adjusted earnings per share of $8.40

CVS posted net long-term debt repayments of $8.8 billion and $18.3 billion in cash flow from operations. 

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2022 Outlook 

The pharmacy company said it expects full-year 2022 profits from continuing operations to range between $7.04 and $7.24 per share. On an adjusted basis, it anticipates earnings of between $8.10 and $8.30 per share.

It also increased its full-year cash flow from operations estimated range to $12 billion to $13 billion.