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With nearly half of all Americans fully vaccinated, demand for
prescription drugs and over-the-counter products at the
company's pharmacies recovered from the declines seen in
previous quarters during the height of the pandemic.
CVS Health raised its 2021 adjusted profit per share outlook to
between $7.70 and $7.80, from $7.56 to $7.68, after it reported
an 11.1% increase in quarterly revenue to $72.6 billion.
The company, however, warned of COVID-19 vaccinations to slow in
the second half of the year, and medical costs to increase
modestly at its health insurance unit Aetna.
Health insurers saw lower medical costs during the initial phase
of the pandemic, as people deferred elective medical procedures,
however, widespread vaccinations have led to demand for non-COVID
healthcare services normalizing.
CVS said its medical benefit ratio (MBR), or the percentage of
premiums paid for medical services, for the second quarter rose
to 84.1% from 70.3%. A lower MBR is better for health insurers
as it signals a tight rein on medical costs.
On an adjusted basis, CVS earned $2.42 per share, beating
estimates of $2.06 per share, according to Refinitiv IBES data.
(Reporting by Amruta Khandekar and Manojna Maddipatla in
Bengaluru; Editing by Shounak Dasgupta)
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