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•The pharmacy giant expects adjusted earnings per share to range from $8.20 to $8.40
CVS Health Corp (NYSE: CVS) raised its full year guidance on Wednesday as it continue to benefit from selling Covid-19 at-home tests and administering vaccines.
The pharmacy giant said it now expects adjusted earnings per share to range from $8.20 to $8.40 for 2022, compared to the earlier forecast of between $8.10 to $8.30.
Shares of the company rose 4.78% at $100.57.
CVS said demand of Covid-19 tests and vaccines will help lift the sales throughout 2023.
“Many like to model Covid going to zero for retail, and that’s a convenient modeling assumption, but I think a very highly unlikely outcome for 2023 as we move from pandemic to endemic,” CVS Chief Financial Officer Shawn Guertin said
In the first quarter, the company posted revenue of $76.83 billion, topping analysts’ expectations of $75.39 billion.
CVS administered more than six million Covid-19 tests and over eight million Covid vaccines, the company said.
With the surge in Covid-19 cases due to the Omicron variant, the demand of Covid-19 tests increased. Same-store sales of CVS grew 10.7% in the first quarter compared to the previous year.
The company said it expects a 70% decline in administering vaccines in 2022 from last year and a 50% fall in demand for at-home tests.
Picture Credits: Reuters
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