The pharmacy chain CVS Health Corp. announced their third-quarter earnings today, showing resilience in the face of challenges posed by the COVID-19 pandemic and adapting to the evolving retail landscape with a focus on health and healthcare services.
In Q3, CVS reported earnings of $1.66 per share, slightly lower than the previous year but exceeding Wall Street’s expectations of $1.33 per share. Same-store sales saw a 5.7% increase, surpassing estimates and marking an improvement from last year. As a result, CVS has revised its projected adjusted earnings for the remaining months of the year to be between $7.335 and $7.45 per share.
CEO Larry Merlo expressed satisfaction with the company’s performance, stating, “Our strong third-quarter results reflect the successful implementation of our long-term strategic plan to revolutionize healthcare delivery. As a provider of integrated health services, we are creating comprehensive and innovative solutions to meet our customers’ needs whether in the community, at home, or through digital platforms.”
Merlo highlighted CVS’s comprehensive response to the pandemic by establishing over 4,000 COVID-19 testing sites nationwide since March, conducting more than six million tests. CVS has been instrumental in assisting businesses and universities in safe reopening efforts and recently secured the responsibility of administering COVID-19 vaccines in long-term care facilities, reinforcing its role in the nation’s recovery.
In an unexpected development, Merlo, who has led CVS for nearly a decade, announced his retirement set for February 2021. Karen Lynch, the current head of CVS’s Aetna Healthcare Unit, will succeed Merlo as CEO.
While my charitable trust owns $CVS, understand that it has historically been blasted by sellers after the conference call https://t.co/2Cj9QmVLog
— Jim Cramer (@jimcramer) November 6, 2020
