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Jun 30, 2020
CVS Health Q2 2020 Earnings Report
CVS Health's Q2 2020 performance was marked by strong enterprise results, driven by diversified assets amidst the COVID-19 pandemic. The company raised its full-year EPS and cash flow guidance.
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
Revenue by Segment
Health Care Benefits Revenue
CapyFin.com 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