CVS Health Corp's (NYSE: CVS) Q2 sales increased 10.3% Y/Y to $88.9 billion, beating the consensus of $86.74 billion, driven by growth across all segments. Adjusted EPS was $2.21, beating the consensus of $2.12.
The company's pharmacy and consumer wellness segment saw revenue grow 7.6% to $28.78 billion, as increased prescription volumes and higher prices offset declining revenue from fewer Covid-19 vaccines and tests.
Prescriptions filled increased by 1.1% on a 30-day equivalent basis, primarily driven by increased utilization, partially offset by a decrease in COVID-19 vaccinations. Excluding the impact of COVID-19 vaccinations, prescriptions filled increased by 3.6%.
Its health services segment reported revenue of $46.22 billion, up 7.6% from a year ago.
The insurance business' medical benefit ratio, or spending on claims against premiums earned, was 86.2%, compared with 82.7% a year earlier, driven by increased outpatient utilization in Medicare Advantage compared to pandemic-influenced utilization levels.
The company said it recorded $496 million in pre-tax charges related to a restructuring program it started during the quarter to rein in costs.
On Tuesday, the company announced it is eliminating approximately 5,000 jobs, mainly in corporate positions, to cut costs and concentrate on healthcare services.
Outlook: CVS Health revised GAAP EPS to $6.53-$6.75 from $6.90-$7.12. The company said it still expects adjusted earnings this year to range between $8.50-$8.70 per share. Analysts forecast earnings of $8.59 per share.
The company also confirmed its full-year 2023 cash flow from the operations guidance range of $12.5 billion to $13.5 billion.
Price Action: CVS shares are down 2.30% at $72.25 during the premarket session on the last check Wednesday.