CVS Health Corp. on Wednesday said its second-quarter profits swung from red to black due partly to new revenues generated by recently acquired Hartford health insurer Aetna.
The Rhode Island-based retail pharmacy and benefits manager said its net income during the April-June period soared to over $1.9 billion, or $1.49 a diluted share, up from a loss of $2.5 billion, or $2.52 a share, in the second quarter of 2018.
CVS, which operates about 9,900 retail locations, said total revenues also jumped 35 percent to $63.4 billion, as its three businesses all recorded an increase in profits during the period.
In particular, the company’s pharmacy services segment recorded $34.8 billion in revenue, up 4.2 percent; retail/LTC notched $21.4 billion, up 3.7 percent; and healthcare benefits generated $17.4 billion.
Adjusted earnings of $1.89 a share were 19 cents better than expected, according to Zacks Investment Research. The company’s stock price of $56.31 was up 4.1 percent as of 9:30 a.m. Wednesday.
CVS has increased its full-year earnings forecast to the range of $6.89 to $7 a share.
While CVS has reaped major benefits from its $69 billion Aetna acquisition, a federal judge is still reviewing an antitrust settlement the U.S. Department of Justice inked with the companies last October.
Several states in court proceedings have said the Justice Department-brokered settlement remedies any potential anti-competitive concerns as a result of the combination.
