CVS health On Thursday, it said it would accelerate sales growth by expanding the services offered at drugstores and people’s homes to make health care more affordable and easier for customers.
The company’s stock has risen about 3% in pre-market transactions.
Drugstore chains and health insurance companies forecast total revenue in 2022 to be $ 304 billion to $ 309 billion, while adjusted earnings per share will be $ 8.10 to $ 8.30.
We have also raised our forecasts for the year and expect adjusted earnings per share to be at least $ 8.00 with revenues of more than $ 290.3 billion. This is an increase from previous forecasts of adjusted earnings per share of $ 790 to $ 8.00 and revenue of $ 286.5 billion to $ 290.3 billion.
CVS announced new forecasts in advance Thursday morning investor day.. This is the first investor day since the pandemic began and the company’s new CEO, Karen Lynch, took the lead role.
CVS is trying to drive more business by combining numerous drugstores, pharmacy benefit manager Caremark, and insurance company Aetna. The company said Thursday it would discuss plans for new health products and services, including subscription models and home care. He said he would share details on how to reduce costs and improve health for people with chronic illnesses such as diabetes and congestive heart disease, such as those who have Etna insurance and prescribe at CVS pharmacies. rice field.
As part of that vision, CVS recently said it Approximately 900 stores will be closed in the next 3 years Or about 9% of the retailer’s total US footprint. In the future, it plans to bring healthcare services to the forefront and set up three stores, including two centralized formats.
CVS said Thursday that it would resume share buybacks and increase dividends. This is the first time the company has done this since 2017, when it announced the acquisition of health insurance company Etna. The company announced that it will raise its annual dividend, which will take effect on the next distribution on February 1, from $ 2.00 to $ 2.20 by 10%. The company has approved a $ 10 billion share buyback program.
At the end of the market on Wednesday, this year’s stock price has risen 36%. CVS shares closed at $ 93.10 on Wednesday. The company has a market value of $ 122.85 billion.
CVS Health Investor Day begins at 8am. Stay tuned for the latest information on this story all day long.
CVS says it expects sales to accelerate as it expands its healthcare services.
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