CVS Stock Skyrockets

CVS Stock Skyrockets

CVS stock was 7.45% on positive second-quarter earnings news.

The Woonsocket-based CVS posted a second straight quarter of what the Wall Street Journal called, “unexpectedly strong financial results, taking another step toward selling skeptical investors on its acquisition of Aetna Inc. as the health insurer drove much of the gains.”

“A month after CVS laid out to investors a plan to create a health-care giant that drives down medical costs and reaps rewards from a more-efficient health-care system, the company reported higher-than-expected profit and raised its earnings outlook for the year. CVS completed its acquisition of Aetna in November. CVS said profit in the quarter increased to $1.93 billion, or $1.49 a share, compared with a net loss of $2.56 billion, or $2.52 a share, a year earlier, when it recorded an impairment charge related to its long-term care business,” reported WSJ.

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President and Chief Executive Officer Larry Merlo stated, “We posted strong second quarter results, with all of our businesses performing at or above expectations. These results demonstrate our ability to execute on our strategic priorities to accelerate enterprise growth as we seek to fundamentally transform the consumer health experience. Given our performance to date and our expectations for the remainder of the year, we are raising and narrowing our Adjusted EPS guidance range to $6.89 to $7.00.”

“We made meaningful advancements on each of the priorities we outlined at our Investor Day in early June to differentiate, transform and modernize the delivery of care. While still early, we remain confident that we will be able to realize the potential of our innovative and powerful new business model to deliver enhanced value to our clients and the consumers we serve.”