CVS Health raises forecast as insurance business, OTC COVID tests boost Q2 profit

[August 03, 2022]  (Reuters) - CVS Health Corp on Wednesday raised its full-year profit forecast after strength in its insurance business and sales of COVID-19 over-the-counter test kits helped the company report a 6% jump in second-quarter earnings.

CVS Health logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

The largest U.S. pharmacy chain's retail and long-term care segment revenue rose 6.3%, helped by the sale of OTC test kits and the impact of the flu season, which helped offset lower COVID-19 vaccinations and diagnostic testing.

Its insurance business reported an 11% growth in revenue as well as a decrease in medical benefit ratio, which is the costs it incurs as a percentage of premiums.

CVS raised its adjusted profit outlook to $8.40-$8.60 per share from $8.20-$8.40 per share forecast earlier.

Net income for the quarter ended June 30 rose to $2.96 billion, or $2.23 per share, from $2.79 billion, or $2.10 per share a year earlier.

(By Leroy Leo and Bhanvi Satija in Bengaluru; Editing by Vinay Dwivedi)

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