CVS ups profit forecast as demand for COVID vaccines, tests rises

The rise of the Omicron variant is sending extra folks to CVS shops for testing.
Bloomberg through Getty Photos

CVS on Tuesday raised its 2021 earnings forecast, citing increased demand for COVID-19 vaccinations and over-the-counter testing as infections within the US soared as a result of fast-spreading Omicron variant.

Shares within the drugstore chain operator have been up practically 1% at $106.10 simply earlier than midday.

The corporate stated it now expects adjusted revenue per share for 2021 within the vary of $8.33 to $8.38, up from a previous forecast of $8.

Greater-than-expected coronavirus vaccinations in November and December, in addition to elevated demand for over-the-counter COVID-19 testing within the final month of 2021, helped with a powerful retail phase efficiency, CVS stated.

Rival Walgreens Boots Alliance final week raised its full-year adjusted revenue development forecast on the again of comparable feedback.

The pharmacy large reported that canceled elective surgical procedures didn’t damage its medical health insurance enterprise.

Common Photos Group through Getty

CVS additionally stated its medical health insurance unit carried out higher than anticipated regardless of increased coronavirus circumstances, significantly within the again half of the fourth quarter, as deferred elective procedures offset increased COVID-19 prices.