CVS/Aetna Has Solid Quarter Despite COVID Headwinds
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.