CVS also raised its full year guidance, with an EPS from continuing operations in the range of $6.24 to $6.36.
CVS Health reported total revenues of $69.1 billion in Q1 2021, driven by broad growth across all segments, according to the company's latest earnings report released Tuesday morning.
CVS recorded an operating income of $3.5 billion, an increase of $119 million year-over-year, as well as a net income of $2.2 billion, marking an increase of $212 million over the same period.
The company also saw its GAAP diluted earnings per share (EPS) rise to $1.68, while its adjusted EPS increased to $2.04.
One area that experienced a decline was enterprise prescriptions, as CVS recorded a decrease of 8.2 million year-over-year.
"We delivered strong first quarter results and improved our outlook for the year," Karen Lynch, CEO of CVS, said in a statement. "We continue to execute on our strategy while simultaneously managing through a pandemic, helping the country on the road to recovery. Our unmatched assets and strength of our brand are driving results as we work toward improving care delivery and driving growth."
By segment, Pharmacy Services led the way in terms of revenue ($36.3 billion) and top-line growth ($1.3 billion) during the quarter.
Retail/LTC produced total revenues of $23.3 billion while Health Care Benefits posted $20.4 billion.
CVS also raised its full year guidance, with an EPS from continuing operations in the range of $6.24 to $6.36, along with an adjusted EPS between $7.56 to $7.68.
The company also affirmed its full year cash flow from operations in the range of $12 billion to $12.5 billion.
Arielle Trzcinski, principal analyst at Forrester, said in an email to HealthLeaders that while CVS reported a slower consumer return to retail store-fronts, its increased engagement in digital assets was "needed."
"The [earnings] call was light on details of the digital experience and the future digital strategy," Trzcinski wrote. "Many consumers have become accustomed to a digital-first engagement model, the key will be in continuing to keep their attention and increasing the value that is delivered in return for consumer engagement and the sharing of their data. The team alluded to the expansion of the next best action multiple times but needs to be clear about how the digital experience will differentiate itself going forward with an emphasis on personalization, data, and analytics. CVS Health has to differentiate itself from the hundreds if not thousands of digital touchpoints that are competing for consumer attention each day."
For complete financial information, review CVS Health's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: KIEV, UKRAINE - February 10, 2021: In this photo illustration the stock market information of CVS Health Corporation displays on a smartphone while the logo of CVS Health Corporation / Editorial credit: IgorGolovniov / Shutterstock.com