CVS Health (NYSE:CVS) shares jumped, on reporting third-quarter earnings Wednesday morning that beat Wall Street’s expectations.
Earnings per share registered at $2.09 as opposed to the expected $1.99. Revenue was $81.16 billion vs. $76.75 billion, expected.
It’s the third consecutive quarter in which CVS beat earnings expectations. Revenue rose 10% year-over-year.
CVS’ Health Care Benefits segment grew nearly 10% compared to the same quarter last year, driven in part by an increase in its medical memberships from 2021. Pharmacy services revenue increased over 10% compared to the period last year, as total claims processed increased by more than 3.6%, with gains offset by a decline in COVID vaccinations.
The retail and long-term care segment saw revenue increase nearly 7%, but its profit decreased due largely to a decline in demand for COVID tests and vaccines.
The company on Wednesday also reported a $5.2-billion charge in the third quarter for a settlement relating to its role in the opioid crisis. According to CVS, the settlement resolves all existing claims against the company relating to opioid distribution.
The company raised its full-year outlook for the second consecutive quarter. Now, the company expects an adjusted earnings per share for the full year of between $8.55 and $8.65, up from the range of $8.40 to $8.60 that it announced in August atop healthy traffic and COVID-related anti-viral drug sales.
CVS opened Wednesday up $2.05, or 2.2%, to $96.67.