CVS Health reports second quarter results; diversified assets deliver strong enterprise results

By CVS Health - Aug 11, 2020

2020 full year EPS and cash flow from operations guidance ranges raised

Aug 11, 2020, /EmailWire/ -- 2020 full year EPS and cash flow from operations guidance ranges raised

Continued Responsiveness to COVID-19:

• Ongoing support for employees, clients and communities across the country

• Opened more than 1,800 test sites at drive-thru locations to date and continue to partner with federal, state and local officials

• Launched Return Ready℠, a comprehensive COVID-19 business-to-business testing program

• Consumer-driven health care model increases access to products and services

Second Quarter Year-over-Year Highlights:

• Total revenues increased 3.0% to $65.3 billion

• GAAP operating income increased 40.5% to $4.7 billion

• Adjusted operating income ⁽¹⁾ increased 32.2% to $5.3 billion

• GAAP diluted earnings per share of $2.26

• Adjusted EPS ⁽²⁾ of $2.64

Year-to-date Highlights:

• Generated cash flow from operations of $10.4 billion

2020 Full Year Guidance:

• Raised GAAP diluted EPS guidance range to $5.59 to $5.72 from $5.47 to $5.60

• Raised Adjusted EPS ⁽²⁾ 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

WOONSOCKET, Rhode Island — CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended June 30, 2020.

CVS Health President and CEO Larry J. Merlo stated, “We’re a health innovation company that is built to meet the evolving needs of the millions we serve every day. That’s been made clear as we continue to navigate the health, social and economic impacts of COVID-19. Our earnings in this environment demonstrate the strength of our strategy and the power of our diversified business model.

“We have a strong foundation of clinical expertise, data analytics and digital capabilities, and unmatched consumer and community reach which has allowed us to rapidly bring our strategy to life at an unprecedented time. The environment surrounding COVID-19 is accelerating our transformation, giving us new opportunities to demonstrate the power of our integrated offerings and the ability to deliver care to consumers in the community, in the home and in the palm of their hand which has never been more important. We have stayed true to our purpose of helping people on their path to better health, and we remain focused on creating value for all our stakeholders.”

A summary of the Company’s response to the COVID-19 pandemic is included on page six.

The Company presents both GAAP and non-GAAP financial measures in this press release to assist in the comparison of the Company’s past financial performance with its current financial performance. See “Non-GAAP Financial Information” on page 12 and endnotes (1) and (2) on page 22 for explanations of non-GAAP financial measures presented in this press release. See pages 13 through 14 and page 21 for reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.