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Last Friday, CVS shares were up by nearly 6% at market close on the news that the company has generated higher-than-expected income after it expanded its drugstore chain business to also include health services covering all needs – from basic health insurance to COVID-19 testing. In its latest earnings call, CVS Health Corp also announced a new CEO.
Here are the main financial highlights from CVS Health’s Q3 2020 earnings release:
– Revenue: $67.06 billion (3.5% growth) versus expectations for $66.66 billion.
– Net income: $1.22 billion, or 93 cents per share, down from $1.53 billion, or $1.17 per share, a year earlier.
– Earnings per share: $1.66 versus expectations for $1.33.
– Sales: prescriptions filled increased by 4.6% compared to last year, while front desk sales skyrocketed as more and more Americans tested for COVID-19 and filled bigger baskets with over-the-counter items.
– New CEO: starting on February 1, 2021, Karen Lynch will become the new CEO of CVS Health Corp. Lynch is currently acting as an executive vice president of CVS Health.
The company has been aiming to become the one-stop-shop healthcare destination and has already redesigned hundreds of its stores to meet this goal. As a result, in addition to medications, healthcare and personal hygiene products, CVS now also offers blood testing, sleep apnea machines, and other health-related services. During the earnings call, current CEO Larry Merlo commented that the addition of COVID-19 testing is “a very tangible proof point of our strategy coming to life in a very meaningful way.”
“If we told you a year ago that to date 6 million people would have gone to their local CVS pharmacy for a diagnostic test related to some virus, I would probably get an eyeball roll. The reality is that’s happened, and it really speaks to the strategy that we’ve talked about in terms of meeting people where they are.”
Larry Merlo, CEO of CVS Health Corp
The company is currently fielding over 4,000 drive-thru test sites at its pharmacies and has carried out more than 6 million tests, with plans of expanding its COVID-19 testing operations by the end of this year already being put into motion.
Full-year earnings guidance
CVS Health Corp raised its full-year guidance for earnings per share to between $5.60 and $5.70 and estimated that its cash flow for the period is expected to range from $12.75 billion to $13.25 billion, but cautioned investors that there is still a lot of uncertainty in the air due to the pandemic.
Upcoming reports
See the full list of upcoming earnings reports for 16 – 20 November in the tables below.
Monday, November 16th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| China | Baidu Inc | Q3 2020 |
| USA | Tyson Foods Inc | Q4 2020 |
| USA | Palo Alto Networks Inc | Q1 2021 |
| United Kingdom | Manchester United PLC | Q1 2021 |
| United Kingdom | Mitchells & Butlers PLC | Full Year 2020 |
| United Kingdom | Talktalk Telecom Group PLC | Interim report for 2021 |
Tuesday, November 17th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Home Depot Inc | Q3 2020 |
| USA | Kohls Corp | Q3 2020 |
| USA | Walmart Inc | Q3 2021 |
| United Kingdom | Easyjet PLC | Full Year 2020 |
| United Kingdom | Big Yellow Group PLC | Half Year 2020 |
| United Kingdom | Imperial Brands PLC | Full Year 2020 |
| United Kingdom | HomeServe PLC | Half Year 2021 |
Wednesday, November 18th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | NVIDIA Corp | Q3 2021 |
| France | Vallourec SA | Q3 2020 |
| USA | TJX Companies Inc | Q3 2021 |
| USA | Target Corp | Q3 2020 |
| USA | Lowe's Companies Inc | Q3 2020 |
| United Kingdom | Halfords Group PLC | Half Year 2021 |
| United Kingdom | SSE PLC | Half Year 2021 |
| United Kingdom | British Land Company PLC | Half Year 2021 |
Thursday, November 19th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Gap Inc | Q3 2020 |
| USA | Ross Stores Inc | Q3 2020 |
| Belgium | Cofinimmo SA | Q3 2020 |
| USA | Intuit Inc | Q1 2021 |
| United Kingdom | Johnson Matthey PLC | Half Year 2021 |
| South Africa | Investec PLC Investec Ltd | Half Year 2021 |
| United Kingdom | Grainger PLC | Full Year 2020 |
| United Kingdom | Royal Mail PLC | Half Year 2021 |
| United Kingdom | Mitie Group PLC | Half Year 2021 |
| France | Bouygues SA | Q3 2020 |
| Germany | Thyssenkrupp AG | Full Year 2020 |
| Chile | Sociedad Quimica y Minera de Chile SA | Q3 2020 |
Friday, November 20th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| United Kingdom | Sage Group PLC | Full Year 2020 |
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