A CVS pharmacy can be seen in Bloomsburg.
Paul Weaver | LightRakete | Getty Images
CVS Health announced Thursday that sales growth will accelerate in the coming years as it focuses on making healthcare more affordable and easier for customers by expanding the services it offers in its drugstores and homes.
The company’s shares are up about 2% in pre-trading hours.
The drugstore chain and health insurer are forecasting adjusted earnings per share of $ 8.10 to $ 8.30 for fiscal 2022 on total revenue of $ 304 to $ 309 billion.
The company also raised its guidance for this fiscal year, expecting adjusted earnings per share of at least $ 8.00 on sales of $ 290.3 billion or more. That’s an increase from an earlier forecast for adjusted earnings from $ 7.90 to $ 8.00 per share and revenue from $ 286.5 billion to $ 290.3 billion.
The company announced its new forecast ahead of an investor day on Thursday morning. It’s the first investor’s day since the pandemic began and since the company’s new CEO, Karen Lynch, stepped into the top position. It was recently announced that around 900 stores would close over the next three years, which is roughly 9% of the retailer’s total US footprint.
CVS announced on Thursday that it would also resume share buybacks and increase the dividend. This was the first time since 2017, when the company announced the acquisition of the Aetna health insurance company. It said it will increase its annual dividend by 10% from $ 2.00 to $ 2.20, effective with the next distribution on February 1st. It has approved a $ 10 billion share buyback program.
At the close of trading on Wednesday, stocks were up 36% this year. CVS stock closed at $ 93.10 on Wednesday. The company’s market value is $ 122.85 billion.
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