CVS beats on earnings and revenue as the company slashes costs

CVS Health on Wednesday reported second-quarter earnings and revenue that beat expectations, as the company slashes costs and lays off thousands of employees.

CVS has implemented a cost-cutting program as it pushes deeper into healthcare services in the wake of its $8 billion acquisition of Signify Health and its $10.6 billion purchase of Oak Street Health.

Part of that effort calls for cutting 5,000 jobs, CNBC reported Tuesday.

Here’s what CVS recorded for its second quarter compared with Wall Street’s expectations, based on a survey of analysts by Refinitiv:

• Earnings per share: $2.21 adjusted, vs. $2.11 expected
• Revenue: $88.9 billion, vs. $86.5 billion expected

The healthcare giant posted net income of $1.91 billion for the quarter, or $1.48 per share, a 37% decline from the same period in 2022 when CVS reported net income of $3.04 billion, or $2.29 per share. Excluding one-time items, CVS reported $2.21 per share for the period.

The company booked revenues of $88.9 billion for the quarter, a 10% increase compared to the year-ago period.

CVS maintained its full-year adjusted earnings guidance of $8.50 to $8.70 per share, after slashing its projections by 20 cents last quarter due to costs associated with its recent acquisitions.

This is a developing story. Please check back for updates.