CVS Health Corp., the parent company of health insurer Aetna, reported higher than expected profits in the second quarter of 2021. The pharmacy, health insurance and retail giant took in $2.42 in earnings per share, beating Wall Street’s estimated EPS of $2.07.
CVS reported $72.6 billion in overall revenue in the second quarter, an 11.1% increase from 2020. Citi analyst Ralph Giacobbe wrote in an Aug. 4 note to investors that the results were “well ahead” of the consensus projection of $70.2 billion in revenue.
CVS’s Health Care Benefits segment took in $20.53 billion in revenue in the second quarter, beating Wall Street projections of $19.95 billion, and yielding an adjusted operating income of $1.61 billion. That segment reported a medical loss ratio of 84.1%, in line with Wall Street’s expectations, according to Giacobbe, and CVS raised its full-year EPS projection from $7.56-$7.68 to $7.70-$7.80.
CEO Karen Lynch, who was head of Aetna before taking over the top job in February, said during an Aug. 4 conference call to discuss the company’s quarterly results that she has been pleased with the work CVS has done integrating the payer into its overall business.