Profit from a major acquisition contributed to creating profits at CVS Health by 42% in the first quarter, and the company increased its forecast for 2019 after it had started the year with a more pessimistic perspective.
Analysts now expect earnings of $ 6.79 per share, according to FactSet.
CVS, the nation's second largest pharmacy chain, runs over 9,900 stores and processes well over one billion prescriptions annually as a pharmacy distribution manager. So-called PBMs provide medical coverage for insurance companies, employers and other large customers.
Last year, it jumped into health insurance when it bought the insurer Aetna for about $ 69 billion.
A federal judge still considers that acquisitions, but CVS Health reported combined results for the first time Wednesday. Aetna helped offset the challenges faced by prescription processors that CVS Health faces.
Insurance companies are pushing cost savings, which push profits on each prescription. Generic drugs are less profitable and make face-seeking competition in the areas outside the pharmacies.
The Aetna agreement gives CVS health a new business strategy with 23 million customers. Woonsocket, Rhode Island, quoted the company as key in quarterly revenue, which jumped 35%, to $ 61.65 billion. Net income climbed to $ 1.42 billion from $ 998 million, while adjusted earnings amounted to $ 1.62 per share.
It was 12 cents better than expected, according to a study by Zacks Investment Research. The revenue also topped expectations.
Shares in CVS Health Corp. jumped over 4% to $ 56.85 before the opening clock.
Parts of this story were generated by Automated Insights (http://automatedinsights.com/ ap) using data from Zacks Investment Research. Access a Zacks inventory report on CVS at https://www.zacks.com/ap/CVS