CVS jumps after beating on earnings, and raising its outlook

CVS on Wednesday reported strong first-quarter earnings and revenue and raised its guidance for the rest of the year, sending shares up 4% ahead of the opening bell.

The integrated pharmacy health care provider earned an adjusted $US1.62 a share on net revenue of $US61.6 billion, easily beating the $US1.51 and $US60.24 billion that analysts surveyed by Bloomberg were expecting. Same-store sales jumped 3.8% versus a year ago, outpacing the 2.6% gain that was anticipated.

“We generated strong first quarter results, providing positive momentum to start the year,” CVS President and CEO Larry Merlo said in the earnings release.

“Following the close of our Aetna acquisition in late November, our first full quarter of combined operations was a success in many ways. In the quarter we continued to advance our integration efforts while beginning to launch new innovations such as our HealthHUB^® concept stores.”

Looking ahead at Q2, CVS see adjusted earnings per share of $US1.68 to $US1.72, topping the $US1.68 that was expected. For the full year, the company expects to earn an adjusted $US6.75 to $US6.90 a share, up from its previous forecast of $US6.68 to $US6.88.

This story is developing. Check back for updates.

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