CVS gets a 3Q boost from Aetna as revenue soars

CVS Health revenue surged in the third quarter as the drugstore chain and pharmacy benefits manager added health insurance and pushed ahead with a plan to change how many of its stores operate.

The company said Wednesday its roughly $69 billion acquisition of the insurer Aetna helped its top line climb 36% in the quarter while earnings rose 10%.

Overall, CVS Health booked $1.53 billion in net income on $64.81 billion in revenue. Adjusted earnings totaled $1.84 per share.

Those results easily topped Wall

Street’s expectations for earnings of $1.77 per share on $63.03 billion in revenue, according to Zacks Investment Research.

CVS Health saw pharmacy claims climb more than 9% in the third quarter from its pharmacy benefit management side, which runs drug plans for customers like insurers and employers.

The company’s prescription growth remains healthy and shows the company is gaining market share, Moody’s vice president Mickey Chadha said in an email.

The addition of Aetna’s mail-order prescription business and specialty pharmacy operations also helped. Conversely, rival Walgreens Boots Alliance has said it has been hurt by a loss of business that Aetna shifted to CVS.

CVS Health’s performance prompted the company to raise its 2019 forecast. The company now expects 2019 earnings to range between $6.97 and $7.05 per share.

That’s higher than the average analyst expectation for earnings of $6.98 per share, according to FactSet.