In this articleCVSFollow your favorite stocksCREATE FREE ACCOUNTCVS Health on Thursday reported second-quarter earnings and revenue that topped estimates and raised its adjusted profit outlook, as it sees strength in its retail pharmacy business and some improvement in its insurance unit. Shares of the retail drugstore chain jumped more than 9% in premarket trading Thursday.The company now expects fiscal 2025 adjusted earnings of $6.30 to $6.40 per share, up from previous guidance of $6 to $6.20 per share. CVS also cut its GAAP earnings guidance, without disclosing additional details.In an interview, CVS CEO David Joyner said the quarterly beat and guidance hike is in part “a tribute to the work and the effort underway within Aetna,” the company’s insurer. He was referring to a “multi-year recovery effort” at Aetna, which has been grappling with higher medical costs in privately run Medicare plans like the rest of the insurance industry. Joyner added that CVS’ retail pharmacy business is “performing really well,” demonstrating the company’s efforts to introduce new technology that improves pharmacy operations and drives efficiency. He also pointed to the company’s investments in labor and its new prescription drug pricing model, which has benefited payers and “separated the pharmacy from the pack.” But the company’s release said the strength in those two business units was offset by a decline in its health services segment. The results cap off the third full quarter with Joyner, a longtime CVS executive, as chief executive of the retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance.Here’s what CVS reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: Earnings per share: $1.81 adjusted vs. $1.46 per share expectedRevenue: $98.92 billion vs. $94.50 billion expectedThe company posted net income of $1.02 billion, or 80 cents per share, for the first quarter. That compares with net income of $1.77 billion, or $1.41 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.81 per share for the quarter.CVS booked sales of $98.92 billion for the first quarter, up 8.4% from the same period a year ago due to growth across all three of its business segments. As part of a broader turnaround plan, the company is pursuing $2 billion in cost cuts over the next several years. Joyner tol …
