CVS Health shares up 3% premarket as earnings beat and company raises guidance

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CVS Health Corp. shares rose 3% in premarket trade Friday, after the drug store chain beat estimates for the third quarter and raised its full-year guidance, amid strong demand for coronavirus testing. CVS posted net income of $1.219 billion, or 93 cents a share, for the quarter, down from $1.529 billion, or $1.17 a share, in the year-earlier period. Adjusted per-share earnings came to $1.66, ahead of the $1.33 FactSet consensus. Revenue rose to $67.056 billion from $64.810 billion, also ahead of the FactSet consensus of $66.624 billion. “We’ve opened more than 4,000 COVID-19 test sites across the country since March, and have administered over six million tests, Chief Executive Larry Merlo said in a statement. “We’re helping businesses and universities safely reopen and we were recently selected to administer COVID-19 vaccinations in long-term care facilities. ” CVS raised its full-year adjusted EPS guidance to a range of $7.35 to $7.45 from a previous $7.14 to $7.27. The FactSet consensus is for $7.23. Shares have fallen 17% in the year to date, while the S&P 500 has gained 8.7%.
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