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Pharmacy chains like CVS have benefited from distribution of
COVID-19 vaccines and tests during the pandemic. However, in
February, the company said it expected a big decline in COVID
vaccination and testing administered at its stores this year.
The company administered more than six million COVID-19 tests
and over eight million COVID-19 vaccines in the quarter, even as
the pace of people getting COVID boosters slowed down and U.S.
reported a drop in testing.
The decline in demand for COVID products was offset by
membership growth in its healthcare benefits segment which
offers various insurance products and services. The segment saw
a 12.8% rise in revenue in the quarter.
The company, which operates one of the largest U.S. drugstore
chains, manages pharmacy benefits for employers and health plans
and owns the Aetna health insurer, said retail segment
performance was also driven by inflation of branded drugs and
higher sales of over-the-counter COVID tests.
As economies opened and quarantine mandates were eased, CVS also
saw an increase in footfall at its stores, aiding its retail
sales growth.
On an adjusted basis, CVS earned $2.22 per share compared with
estimates of $2.15, while first-quarter revenue of $76.82
billion surpassed estimates of $75.4 billion.
The company now expects 2022 full-year adjusted profit to be
between $8.20 and $8.40 per share, higher than its prior
guidance of $8.10 and $8.30 per share.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Krishna
Chandra Eluri)
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