Sales beat the estimate
CVS Health (CVS) reported stronger-than-expected third-quarter sales. The company reported net sales of $47.3 billion, which beat analysts’ estimate of $47.2 billion and increased 2.4% on a YoY (year-over-year) basis. Increased net new business, the growing adoption of Maintenance Choice offerings, brand inflation, and higher same-store prescription volumes drove the company’s third-quarter net sales growth.
In comparison, Walgreens Boots Alliance (WBA) reported double-digit growth in its net sales during the last reported quarter, which reflected the benefits from its recent acquisitions. However, the reported revenues fell short of analysts’ expectation.
Sales by segments
CVS’s Pharmacy Services segment’s top line rose 2.6% to $33.8 billion during the third quarter. The increased pharmacy network, growth in the mail choice claim volume, and brand inflation drove the net sales. However, pricing pressure remained a drag. Increased Pharmacy network claims were driven by net new business. The growth in the adoption of the Maintenance Choice offerings drove the mail choice claim volumes.
CVS’s net sales in the Retail/LTC segment rose 6.4% to $20.9 billion due to a higher same-store prescription volume (+ 9.2%) on a 30-day equivalent basis. However, reimbursement pressure continued to remain a drag. During the reported quarter, same-store sales increased 6.7%, while pharmacy same-store sales rose 8.7% due to increased prescription volumes. Front store same-store sales increased 0.8% due to strength in the beauty and health categories.