Vaccinations Boost CVS Health Q2 Earnings; Raises FY21 Earnings Outlook, Expects Modest Rise In Costs - CVS Health (NYSE:CVS)

CVS Health Corporation CVS raised its annual earnings forecast after reporting Q2 EPS of $2.42, beating analysts' estimates of $2.06
Revenues increased to $72.6 billion, up 11.1% Y/Y, surpassing the consensus of $70.1 billion, helped by higher prescription drug sales, COVID-19 testing, and vaccinations at its pharmacies and clinics.
With nearly half of all Americans fully vaccinated, demand for prescription drugs and OTC products at the Company's pharmacies recovered from the declines seen in previous quarters during the height of the pandemic.
CVS administered more than 6 million COVID-19 tests and nearly 17 million COVID-19 vaccines nationwide.
Prescriptions filled increased 14.2% Y/Y, primarily driven by COVID-19 vaccinations, continued adoption of patient care programs, and increased new therapy prescriptions, both of which were adversely impacted by the COVID-19 pandemic.
CVS said its medical benefit ratio (MBR), or the percentage of premiums paid for medical services, rose to 84.1% from 70.3% for Q2. A lower MBR is better for health insurers as it signals a tight rein on medical costs.
FY21 Outlook: CVS Health raised the adjusted EPS outlook to $7.70 - $7.80 (consensus $7.66), from $7.56 to $7.68.
However, it warned of COVID-19 vaccinations to slow in the second half of the year and medical costs to increase modestly at its health insurance unit Aetna.
CVS Health also raised the minimum enterprise hourly wage to $15 an hour effective July 2022, with incremental increases to the Company's competitive hourly rates starting this month. Approximately 65% of employees earning hourly wages already make more than $15 an hour.
Price Action: CVS shares are down 1.54% at $82.71 during the market session on the last check Wednesday.
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