Aetna parent CVS Health said its first quarter profits grew nearly 41%, thanks mainly to a surge in store sales as consumers bought merchandise and medication in preparation for the ongoing COVID-19 pandemic.
Profits for the three months ended March 31 totaled $2 billion, or $1.53 per diluted share, up from $1.42 billion, or $1.09 per share, in the first quarter of 2019.
Revenue for the recent quarter totaled $66.76 billion, up from $61.65 billion a year ago.
The profits beat analyst estimates compiled by Zacks Investment Research by about 17%.
CVS shares were trading at $61.21 in pre-market trading Wednesday morning, up from Tuesday’s $59.95 closing price.
While many public companies have pulled or altered their 2020 earnings guidance due to COVID-19, CVS held firm on its pre-pandemic profit outlook for the year: diluted earnings per share ranging from $5.47 to $5.60.
Leading the first-quarter revenue growth was CVS’ retail and long-term care segment, which booked $22.5 billion in revenue, up 7.7%. Front store sales grew 8.5% year over year, as shoppers stocked up.
Meanwhile, the pharmacy services segment grew its revenue by 4.2% to $34.9 billion, reflecting an increase in the use of 90-day prescriptions and early medication refills.
For the ongoing second quarter, there are some signs of slowdown for the company, which reported that April saw slower growth in new prescriptions, related to fewer physician visits during the pandemic, as well as a  nearly 11% drop in front store sales, due to lower foot traffic in stores.
CVS’ healthcare benefits segment, which includes Aetna, recorded $17.6 billion in revenue, up 7.4% from a year earlier, due to membership gains in its Medicare and Medicaid products. However, its operating income was down by $60 million, the result of Aetna’s divestiture of its Medicare Part D standalone plans at the end of 2019 as well as membership declines in commercial insured products.
