The pharmacy and healthcare company CVS Health Corporation (CVS) announced its first-quarter report for the year recently, which provided an improved year-end outlook.
The company’s revenue in the first quarter increased 3.5% year over year, beating Wall Street’s forecasts. Growth was observed in all directions, led by the pharmacy segment, which brought in $ 36.3 billion (+ 3.8 % YoY). In addition to adding new business, the company also attributes this growth to a shift in product mix and increased prices for branded drugs.
Medicare and Medicaid grew by 6.7 % to $20.5 billion, mostly due to the company’s Medicare and Medicaid businesses. During the first quarter, CVS Health generated revenue of $ 23.3 billion, up 2.3% year on year. CVS Health reported an adjusted net income of $ 2.04 per share in the year ended December 31, 2006, compared with an adjusted net income of $ 1.91 per share the prior year.
Last year, CVS Health Corporation (CVS) announced an initiative allowing drugs from pharmacies by robotic vehicles. Further, the company is prepared to invest in telemedicine, which became a hit during the COVID-19 epidemic. With automated delivery, CVS Health could increase profits and sales, as fewer staff members and retail points of sale are required. More than 600% of telemedicine consultations were conducted during COVID-19, and 1000% of prescriptions were delivered to patients’ homes. CVS Health is trying to take advantage of the trend and become the leader in a new service industry segment.
CVS Health’s first-quarter results enabled it to raise its 2021 guidance. According to GAAP, the company expects earnings per share between $ 6.24 and $ 6.36. Non-GAAP earnings are estimated between $ 7.56 and $ 7.68.
CVS Health Corporation (CVS) shares closed the day up 2.37% to $83.04. During the past three months, the average volume traded was 6.95 million shares. However, today’s volume of trades was 10.84 million shares. The company had an earnings-per-share ratio of 5.47 during the trading session. The stock fluctuated between $80.42 and $83.30. Over the past five sessions, CVS’s stock moved up 10.13%, but over the last month moved up 11.28%. The company has also gained 21.58% year-to-date. In the past 50 days, the stock’s moving average has been above $74,16. In the past 200 days, the stock has been above $67.90. Additionally, the stock has an RSI reading of 79.99.