CVS Health Corp Raises Its 2020 Earnings Guidance After Q3 Revenue Exceeded Expectations

Earnings analysis of CVS Health Corp for Q3 2020

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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 originCompany nameFiscal period
ChinaBaidu Inc
Q3 2020
USATyson Foods Inc
Q4 2020
USAPalo Alto Networks Inc
Q1 2021
United KingdomManchester United PLC
Q1 2021
United KingdomMitchells & Butlers PLC
Full Year 2020
United KingdomTalktalk Telecom Group PLC
Interim report for 2021

Tuesday, November 17th 2020

Country of originCompany nameFiscal period
USAHome Depot Inc
Q3 2020
USAKohls Corp
Q3 2020
USAWalmart Inc
Q3 2021
United KingdomEasyjet PLC
Full Year 2020
United KingdomBig Yellow Group PLC
Half Year 2020
United KingdomImperial Brands PLC
Full Year 2020
United KingdomHomeServe PLC
Half Year 2021

Wednesday, November 18th 2020

Country of originCompany nameFiscal period
USANVIDIA Corp
Q3 2021
FranceVallourec SA
Q3 2020
USATJX Companies Inc
Q3 2021
USATarget Corp
Q3 2020
USALowe's Companies Inc
Q3 2020
United KingdomHalfords Group PLC
Half Year 2021
United KingdomSSE PLC
Half Year 2021
United KingdomBritish Land Company PLC
Half Year 2021

Thursday, November 19th 2020

Country of originCompany nameFiscal period
USAGap Inc
Q3 2020
USARoss Stores Inc
Q3 2020
BelgiumCofinimmo SA
Q3 2020
USAIntuit Inc
Q1 2021
United KingdomJohnson Matthey PLC
Half Year 2021
South AfricaInvestec PLC
Investec Ltd
Half Year 2021
United KingdomGrainger PLC
Full Year 2020
United KingdomRoyal Mail PLC
Half Year 2021
United KingdomMitie Group PLC
Half Year 2021
FranceBouygues SA
Q3 2020
GermanyThyssenkrupp AG
Full Year 2020
ChileSociedad Quimica y Minera de Chile SA
Q3 2020

Friday, November 20th 2020

Country of originCompany nameFiscal period
United KingdomSage Group PLC
Full Year 2020

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