Heard on the Street: One reason for Wall Street’s skittishness on CVS earnings—a rush of Covid-19 vaccinations helps explain the strong quarter
Don’t be fooled by a sour reaction from Wall Street. Second-quarter results from CVS Health show the pharmacy and insurance giant has excellent vital signs.and adjusted earnings of $2.42 a share both easily topped analyst expectations. CVS also upped its 2021 profit forecast for the second time this year.One reason for Wall Street’s skittishness:helps explain the strong quarter. CVS administered about 17 million shots during the quarter—a pace that is bound to slow over the rest of the year.
Those growth rates will slow in the near term, but other, larger parts of the business are set to thrive in the longer term. For instance,of health insurer Aetna back in 2018 looks like a winner. Insurance revenue rose 11% from a year earlier and, while the segment’s operating income fell from pandemic-inflated levels, it was up 12% from the second quarter of 2019 even as demand for healthcare returned to normal levels.
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