On Wednesday, CVS health had reported their earnings for the fourth quarter and the revenue which beat the expectations of Wall Street which had been boosted by the higher sales of the business of pharmacy benefit management.
Their president and CEO, Larry Merlo has said that they were working for the transformation of the way the health care has been delivered to the millions of Americans and they were driving the performance of business and the generation of positive momentum across this enterprise. He further said that as a result of the significant progress they had made in the year 2019 and the meeting or the exceeding of expectations for this year, they had raised their outlook for the year 2020.
The chain of drugstore has expected the earnings of 2020 between the levels of $7.04 a share and $7.17 a share.
CVS, on unadjusted basis had earned $1.75 billion or a level of $1.33 per share in the quarter which ended on 31st of December. This compares with the loss of $418 million or a 37 cents per share loss in the same quarter one year ago. The operating income has seen an increase by an amount of 1.3% in quarter four to a level of $3.8 billion. The earnings per share adjusted had fallen from $2.14 to $1.73. Revenues have risen by 23% to a level of 66.9 billion.
This stock had been up by over 1% in the premarket trade after it had initially fallen by close to 1%.
The health benefits of CVS had managed to double the revenue primarily because of the activities of merger and acquisition which it had engaged itself in.