CVS Could Rally Towards $100 as Covid Vaccines and Prescription Volumes Boost Earnings
The shares of CVS could rally towards the $100 mark after the company reported a better-than-expected earnings result thanks to the increase in Covid vaccines and prescription volumes.
CVS’s Earnings Surpass Analysts’ Expectations
CVS Health reported its third-quarter earnings earlier today, surpassing analysts’ expectations. The company generated $73.79 billion in the last quarter, surpassing the $70.49 billion expected by Wall Street analysts.
The earnings per share for the previous quarter was $1.97 adjusted vs. $1.78 expected. The drugstore chain and health insurer’s earnings were exceptional thanks to the boost it got from filling more prescriptions and giving more Covid-19 vaccines during the third quarter.
Thanks to the better-than-expected earnings result, the company adjusted its earnings per share outlook for the year to range between $7.90 and $8.00, up from $7.70 to $7.80. However, due to the numerous one-time expenses such as the acquisition of Aetna and others, CVS was forced to adjust its full-year guidance for earnings per share to between $6.13 and $6.23 from $6.35 to $6.45 previously.
CVS’s sales surged higher during the last quarter as more people came to stores for Covid-19 tests and vaccines. The company revealed that it administered 8.5 million tests and 11.6 million shots within the three months period that ended in September 2021. The vaccine administration dropped from 17 million in the second quarter, while the tests increased from 6 million.
CVS Could Rally Towards the $100 Level
The shares of CVS are up by nearly 5% since the US market opened a few hours ago. At the time of writing, CVS is trading above $95 per share and could be set to break the $100 mark before the end of the year.
The stock price could rally as more people in the United States get tested and vaccinated against the Coronavirus. Year-to-date, CVS has added 43% to its value, making it one of the top performers in the pharmaceutical sector. More people could look to enter the stock market as the com