CVS Health Corp.'s second-quarter adjusted EPS and net income exceeded analyst expectations Aug. 7 as the company raised its profit expectations for full year 2019.
Adjusted EPS for the three months to June 30 of $1.89 surpassed the S&P Global Market Intelligence estimate for normalized EPS of $1.69. Adjusted net income rose 43% to $2.46 billion from $1.72 billion, beating the Market Intelligence estimate for net income excluding exceptions of $2.21 billion.
The Woonsocket, R.I.-based pharmacy chain raised its guidance for 2019 adjusted EPS to a range between $6.89 and $7.00, up from a range between $6.75 and $6.90. It also narrowed its GAAP diluted EPS expectations to a range between $4.93 and $5.04 from between $4.90 and $5.05.
CVS also now expects adjusted operating income of between $15.2 billion and $15.4 billion, up from between $15 billion and $15.2 billion. The company confirmed its outlook for consolidated GAAP operating income, saying it still expects the metric in a range between $11.8 billion and $12 billion.
For the third quarter, CVS expects adjusted EPS of between $1.75 and $1.79, or between $1.16 and $1.20 on an as-reported basis.
Revenue in the second quarter increased 35% to $63.43 billion.
"We posted strong second quarter results, with all of our businesses performing at or above expectations," said President and CEO Larry Merlo.
Shares of CVS traded 5.1% higher at $56.85 in premarket trading. The company reported its results before U.S. markets opened Aug. 7.