CVS Health Q2 2020 Earnings Report
Key Takeaways
CVS Health reported a 3.0% increase in total revenues, reaching $65.3 billion. GAAP operating income increased by 40.5% to $4.7 billion, and adjusted operating income increased by 32.2% to $5.3 billion. GAAP diluted earnings per share was $2.26, and adjusted EPS was $2.64.
Total revenues increased by 3.0% to $65.3 billion, driven by growth across all segments.
GAAP operating income increased by 40.5% to $4.7 billion, and adjusted operating income increased by 32.2% to $5.3 billion.
GAAP diluted earnings per share reached $2.26, and adjusted EPS was $2.64.
The company raised its full-year 2020 GAAP diluted EPS guidance range to $5.59 to $5.72 and adjusted EPS guidance range to $7.14 to $7.27.
CVS Health
CVS Health
CVS Health Revenue by Segment
Forward Guidance
CVS Health raised its full year 2020 GAAP diluted EPS guidance range to $5.59 to $5.72 from $5.47 to $5.60 and its full year 2020 Adjusted EPS guidance range to $7.14 to $7.27 from $7.04 to $7.17 and also raised its full year 2020 cash flow from operations guidance range to $11.0 billion to $11.5 billion from $10.5 billion to $11.0 billion.
Positive Outlook
- Raised GAAP diluted EPS guidance range to $5.59 to $5.72 from $5.47 to $5.60
- Raised Adjusted EPS guidance range to $7.14 to $7.27 from $7.04 to $7.17
- Raised cash flow from operations guidance range to $11.0 billion to $11.5 billion from $10.5 billion to $11.0 billion
- Projects higher utilization in its Health Care Benefits segment in the second half of 2020 than in the first half of 2020
- Reflects an update to its estimated full year effective income tax rate
Challenges Ahead
- Acknowledges the inherent and unprecedented uncertainty surrounding the ongoing COVID-19 pandemic and its impact
- Projects continued significant COVID-19 related investments, including operating costs, in the remainder of the year.
- Risks and uncertainties related to the COVID-19 pandemic
- The pandemic’s impact on the U.S. and global economies and consumer behavior and health care utilization patterns
- The timing, scope and impact of stimulus legislation and other federal, state and local governmental responses to the pandemic