The pharmacy chain ultimately posted a $2.56 billion net loss for the quarter.
CVS Health reported second-quarter earnings Wednesday morning that outperformed expectations, as the pharmacy chain pushes to finalize a purchase of insurer Aetna.
Net revenues were $46.7 billion for second quarter ended June 30, up 2.2% from the same period last year. Adjusted earnings were $1.72 billion, or $1.69 per share, up 27% from $1.33 last year.
Analysts polled by Thomson Reuters expected revenue of $46.35 billion and adjusted earnings of $1.61 per share, as CNBC reported.
"Our solid performance both in the quarter and year-to-date demonstrates our ability to drive value," CVS President and CEO Larry Merlo said in a statement. "It also builds upon a strong foundation for a seamless integration of CVS and Aetna with one goal: to transform the consumer health care experience and, by doing so, deliver long-term profitable growth for shareholders."
- Still posted a loss: Despite beating expectations, thanks in part to rising prescription sales, CVS ultimately posted a $2.56 billion net loss for the quarter. That accounted for a $3.9 billion goodwill impairment charge pertaining to the company's long-term care business.
- Forecast raised: Looking ahead to the full year, CVS raised the lower threshold of its earnings estimate to $6.98 per share, from $6.87. The upper bound remained at $7.08 per share.
- CVS-Aetna: Merlo projected confidence as CVS looks to finalize its acquisition of Aetna, which the company said is expected to close during the third quarter or early part of the fourth quarter this year—this despite a possible roadblock from California Insurance Commissioner Dave Jones, who urged the Department of Justice to block the deal.
- Digital expansion: All of this comes as CVS MinuteClinics made a move into telemedicine, announcing Wednesday a partnership with Teladoc Health, as CNBC reported.
Additional details on the earnings report are available on the CVS website.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.