Although its Aetna acquisition still awaits final approval from a judge, CVS Health cited it and other positive developments for the strong numbers.
Woonsocket, Rhode Island–based CVS Health posted strong second-quarter financials Wednesday, reporting $63.43 billion in adjusted revenues for the three months ended June 30, up from the $46.92 billion it reported the same period a year prior, an increase of more than 35%.
That translated to adjusted earnings per share of $1.89, which was 20 cents higher than the $1.69 reported a year prior and 17 cents above the high end of the company's guidance, according to a presentation released with the Q2 numbers.
CVS Health's leaders pointed to the company's nearly $70 billion Aetna acquisition—which is still waiting for a federal judge's final stamp of approval—as the primary driver of its revenue growth. But increases in volume and brand-name drug prices in both the pharmacy services and retail/long-term care segments contributed as well, according to the earnings report.
The company was similarly encouraged by recent policy developments, including the Trump administration's decision to abandon its drug rebate rule, according to the presentation. Withdrawing that proposed rule recognizes that pharmacy benefic management (PBM) firms add value to the marketplace and help to keep costs in check for Medicare Part D beneficiaries, the presentation states.
"We posted strong second quarter results, with all of our businesses performing at or above expectations. These results demonstrate our ability to execute on our strategic priorities to accelerate enterprise growth as we seek to fundamentally transform the consumer health experience."
—Larry Merlo, president and CEO
Additional CVS Q2 Highlights
- CVS Health's stock price was up more than 4% during early morning trading.
- The company's healthcare benefits segment saw Q2 revenues rise more than $16 billion over last year.
For complete financial information, review CVS Health's filing with the Securities and Exchange Commission.
Steven Porter is an associate content manager and Strategy editor for 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)