CVS Health Corp. said its profit and sales rose for the latest quarter, partly driven by gains from the rollout of Covid-19 vaccines in the U.S. while it saw broader revenue growth in other segments.
The pharmacy and insurance company on Tuesday said revenue in the segment that fulfills medication prescriptions and sells general products climbed 2.3% to $23.27 billion, boosted by higher Covid-19 testing and vaccinations. Partly offsetting the gains was lower front-store revenue, which saw an acceleration of demand in March 2020 as consumers prepared for the coronavirus pandemic, and a weak cough, cold and flu season, CVS said.
The company posted revenue of $69.1 billion, up 3.5% from a year earlier and ahead of the FactSet consensus of $68.36 billion. Same-store sales, or those at retail pharmacy stores that had been operating for more than one year, increased 0.4%.
Shares rose about 3% in premarket trading.
CVS, along with rival Walgreens Boots Alliance Inc., supermarket chain Kroger Co. and Walmart Inc. have been offering vaccines at their locations. More than 40% of all U.S. adults have been fully vaccinated, according to Centers for Disease Control and Prevention data, and the daily number of new Covid-19 cases have been declining. Governors across the U.S. are now rolling back restrictions implemented during the pandemic.