CVS tops profit estimates on Aetna strength

This post was originally published on this site

(Reuters) – CVS Health Corp (N:) posted a better-than-expected quarterly profit on Wednesday, boosted by its pharmacy benefit management unit and the Aetna (NYSE:) health insurance business it acquired last year.

Shares of the company rose 3% in premarket trading after the company also raised its 2019 adjusted profit forecast range to $6.97 to $7.05 per share, from $6.89 to $7.00.

Sales in the company’s pharmacy services unit increased 6.4% to $36.02 billion in the third quarter, helped by a rise in prices of branded drugs and increased claims.

The company, which also runs drugstores, closed its $69 billion purchase of Aetna in November 2018.

Sales in its health care benefits business, which houses Aetna, soared to $17.18 billion, helped by lower-than-expected medical costs. The unit reported a medical benefit ratio of 83.3%, compared with estimates of 84.3% according to four analysts polled by Refinitiv.

CVS Health’s net profit rose 10.1% to $1.53 billion, or $1.17 per share, in the quarter ended Sept. 30.

Excluding items, the company earned $1.84 per share, above analysts’ estimates of $1.77.

Revenue jumped 36.5% to $64.81 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.