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CVS Well being lifts forecast as insurance coverage enterprise, COVID exams increase Q2 revenue

CVS Well being brand is seen displayed on this illustration taken, Could 3, 2022. REUTERS/Dado Ruvic/Illustration

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Aug 3 (Reuters) – CVS Well being Corp (CVS.N) on Wednesday raised its annual revenue forecast after energy in its insurance coverage enterprise and gross sales of COVID-19 over-the-counter take a look at kits helped increase quarterly earnings.

Shares within the largest U.S. pharmacy chain rose about 3% earlier than the bell.

The corporate's retail and long-term care phase income rose 6.3% to $26.3 billion, because the sale of OTC antigen COVID take a look at kits and the impression of the flu season helped offset the impact of decrease COVID-19 vaccinations and diagnostic testing.

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Pharmacy chain operators corresponding to CVS have benefited from distributing COVID vaccines and exams throughout the pandemic, with an Omicron-driven surge in infections driving up demand for its OTC exams within the quarter.

Demand for lab exams and vaccinations, nevertheless, slowed as general circumstances in america remained regular, with greater than two-thirds of the folks being absolutely vaccinated and about 48% having acquired a booster dose, in keeping with authorities knowledge.

Income on the firm's medical health insurance unit rose 11% to $22.8 billion whereas the medical profit ratio or prices as a share of premiums fell to 82.9% from 84.1%, as demand for routine, non-elective medical care recovered at a slower-than-expected tempo, permitting the corporate to rein in bills.

CVS raised its adjusted revenue outlook to $8.40-$8.60 per share from $8.20-$8.40 per share forecast earlier.

Internet revenue for the quarter ended June 30 rose to $2.96 billion, or $2.23 per share, from $2.79 billion, or $2.10 per share a 12 months earlier.

Complete income rose to $80.6 billion from $72.6 billion a 12 months earlier.

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By Leroy Leo and Bhanvi Satija in Bengaluru; Enhancing by Vinay Dwivedi

Our Requirements: The Thomson Reuters Belief Ideas.

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