CVS Health profit beats on higher prescription drug sales

Desiree Burns
August 10, 2018

CVS Health shares have fallen roughly 10 percent since the beginning of the year, while the Standard & Poor's 500 index has risen nearly 7 percent. Earnings, adjusted for asset impairment costs and amortization costs, were $1.69 per share. Wall Street is estimating earnings per share of $7.00 for the year.

3, 2017, file photo shows a CVS Pharmacy in the Brooklyn borough of NY.

More notable recent CVS Health Corporation (NYSE:CVS) news were published by: Benzinga.com which released: "Benzinga Pro's 5 Stocks To Watch Today" on August 08, 2018, also Benzinga.com with their article: "Earnings Scheduled For August 8, 2018" published on August 08, 2018, Schaeffersresearch.com published: "CVS Call Options Hot Ahead of Earnings" on August 07, 2018.

CVS Health runs the nation's second-largest drugstore chain and processes more than a billion prescriptions a year as a pharmacy benefit manager. Critics say those largely secretive agreements play a major role in keeping drug prices elevated, and regulators have talked about eliminating them.

"We're excited to be able to bring this innovative care option to patients", said Troyen A. Brennan, M.D., Executive Vice President and Chief Medical Officer of CVS Health.

The American Medical Association, which represents U.S. physicians, urged the U.S. Justice Department on Wednesday to stop CVS Health Corp's plan to buy insurance provider Aetna Inc, saying the deal could result in higher prices for prescription medicines.

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Overall, CVS posted $46.7 billion net revenue for the second quarter of 2018, up 2.2 percent from the same period a year ago. Both figures beat expectations. The company had a trading volume of 771,231 shares, compared to its average volume of 6,602,373.

The company's results come at a time when PBMs are at the crosshairs of the Trump administration, which last month proposed a rule that would scale back protections now in place that allow rebates between drug manufacturers and insurers and PBMs.

That charge and some costs tied to a pending $69 billion acquisition of the health insurer Aetna led to the quarterly loss.

The company also raised the lower end of its 2018 adjusted earnings forecast to $6.98 to $7.08 per share from its previous forecast of $6.87 to $7.08 per share. Loop Capital set a $68.00 price objective on shares of CVS Health and gave the stock a hold rating in a report on Monday, May 7th. Omnicare provides pharmacy services to nursing homes and other clients.

Trust Co. of Oklahoma cut its holdings in shares of CVS Health Corp (NYSE:CVS) by 9.3% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).

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