CVS fourth-quarter earnings top expectations as Covid tests lift overall store sales

A teen receives her Pfizer Covid-19 booster at a CVS pharmacy in New York City on Jan. 20th, 2022.

Adam Jeffery | CNBC

CVS Health said Wednesday that demand for at-home Covid tests and booster shots lifted overall store sales, helping the company top expectations for fourth-quarter earnings.

Shares of the drugstore chain and health insurer fell more than 2% in premarket trading.

Here’s what the company reported for the three-month period ended Dec. 31, compared with what analysts were expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $ 1.98 adjusted vs. $ 1.93 expected
  • Revenue: $ 76.60 billion vs. $ 75.67 billion expected

CVS reported fiscal fourth-quarter net income of $ 1.31 billion, or 99 cents per share, up from $ 973 million, or 74 cents per share, a year earlier.

The company said its net income from continuing operations was 98 cents. But it earned $ 1.98 per share, after adjustments, which was more than the $ 1.93 per share expected by analysts surveyed by Refinitiv.

Total revenue for the period rose to $ 76.60 billion from $ 69.55 billion a year earlier, exceeding expectations of $ 75.67 billion.

Shares of CVS are up 51% over the past 12 months and touched a 52-week high on Tuesday. Shares closed Tuesday at $ 110.83, up 1.3%. The company’s market value is $ 146.30 billion.

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