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Retail

Drugstore Operator CVS Raises Profit Forecast

By Steve Wynne-Jones
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Drugstore Operator CVS Raises Profit Forecast

CVS Health Corp has raised its 2021 earnings forecast, citing higher demand for COVID-19 vaccinations and over-the-counter testing as infections in the United States soared due to the fast-spreading Omicron variant.

Shares in the US-based drugstore chain operator rose nearly 2% to $107 (€94.21) following the announcement.

The company said it now expects adjusted profit per share for 2021 in the range of $8.33 to $8.38, up from a prior forecast of $8.00.

Higher-than-expected coronavirus vaccinations in November and December, as well as elevated demand for over-the-counter COVID-19 testing in the last month of 2021, helped with a strong retail segment performance, CVS said.

Walgreens Boots Alliance

Rival Walgreens Boots Alliance Inc last week raised its full-year adjusted profit growth forecast on the back of similar comments.

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CVS also said its health insurance unit performed better than expected despite higher coronavirus cases, particularly in the back half of the fourth quarter, as deferred elective procedures offset higher COVID-19 costs. [Image: ©unitysphere/123RF.COM]

News by Reuters, edited by ESM. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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