The company made a series of leadership changes in addition to releasing its earnings report.
CVS Health finished 2019 with more than $256 billion in total revenues and an operating income of $12 billion, according to the company's latest earnings report released Wednesday morning.
CVS saw its adjusted operating income rise just over 36% for 2019, topping $15 billion, while the company's adjusted earnings per share (EPS) inched past $7.
The Woonsocket, Rhode Island–based company also generated cash flow from operations of $12.8 billion and boosted its financial guidance across several metrics for 2020.
"As we work to transform the way health care is delivered to millions of Americans, we are driving continued business performance and generating positive momentum across the enterprise," Larry Merlo, CEO of CVS, said in a statement. "Our fourth quarter and full-year financial results reflect strong financial and operational execution and a successful first year of integrating the Aetna business. We’re using our unmatched capabilities to create a higher-quality, simpler and more affordable health care experience, which benefits patients, clients and consumers and positions the company for continued success."
CVS also announced a series of leadership changes, including the departure of CVS Caremark president Derica Rice at the end of the month, who will be succeeded vy Alan Lotvin, M.D., who has served as executive vice president as CVS Health.
For Q4 2019, CVS ended the year with strong performances in key metrics, including total revenues that rose nearly 23% and an operating income that hit $3 billion.
The company also produced a net income of $1.7 billion in Q4, one year after it recorded a net loss of $421 million, and produced an EPS of $1.33 rather than a negative EPS of $0.37 in Q4 2018.
Ahead of its earnings report, CVS announced that the company invested $67 million in affordable housing during 2019, an investment that is expected to rise to $75 million in 2020.
Pharmacy revenues increased more than 5% during both Q4 and 2019, benefitting from "brand inflation" and "increased total pharmacy claims volume," according to the company.
Revenues for CVS' retail and long-term care segment grew at a lower level than its pharmacy segment in Q4 2019 but posted an operating income of $$1.9 billion, a marked improvement over its net loss of $270 million in Q4 2018.
CVS' healthcare benefits segment revenues reached $69 billion for 2019, up more than $60 billion year-over-year.
Looking ahead, CVS projects its operating income will be between $12.8 billion to $13 billion in 2020, while its adjusted EPS is expected to be in the range of $5.47 to $5.60.
CVS also expects its cash flows from operations to be between $10.5 billion to $11 billion.
CVS' stock was trading up nearly 1% during the early morning session following the release of its earnings report.
For complete financial information, review CVS Health's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: San Carlos, CA - Aug. 19, 2016. CVS Pharmacy. Originally named Consumer Value Store, CVS Pharmacy is now a subsidiary of the American retail and health care company CVS Health. (Editorial credit: jejim / Shutterstock.com)