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Wed, September 30 at 4:00PM ET

CVS Earnings: CVS Stock Ticks 1% Lower Despite Big Q2 Beat

CVS also updated its outlook for 2020

CVS (NYSE:CVS) earnings for the pharmacy company’s second quarter of 2020 have its stock down on Wednesday. That’s despite its adjusted earnings per share of $2.64 handily beating out Wall Street’s estimate of $1.93. Its revenue of $65.34 billion also comes in well above analysts’ estimate of $64.23 billion.

CVS (CVS) pharmacy location with people entering and exiting the store
Source: Jonathan Weiss / Shutterstock.com

Let’s take a deeper dive into the most recent CVS earnings report below.

  • Adjusted per-share earnings are up 39.7% from $1.89 in the same period of the year prior.
  • Revenue for the quarter is sitting 3% higher than the $63.43 billion reported in the second quarter of 2019.
  • Operating income of $4.68 billion is a 40.5% increase year-over-year from $3.33 billion.
  • The CVS earnings report also has it bringing in a net income of $2.99 billion.
  • That is a 54.9% jump from the company’s net income of $1.93 billion reported during the same time last year.

Larry Merlo, president and CEO of CVS, said this in the earnings report.

“The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important.”

CVS also updates its 2020 guidance during the current earnings report. This has it expecting adjusted EPS of $7.14 to $7.27 for the year. That’s looking good next to Wall Street’s estimate of $7.16 for the period.

CVS stock was down 1.4% as of Wednesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/08/cvs-earnings-dip-stock-despite-beat/.

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