In the first quarter, revenue also jumped 35 percent from a year earlier to $61.65 billion. CVS largely attributed the jump to the new Aetna business.
Both revenue and net income were above analysts’ expectations.
“Following the close of our Aetna acquisition in late November, our first full quarter of combined operations was a success in many ways,” CVS CEO Larry Merlo told CNBC.
CVS’ retail business saw same-store sales increase 3.8 percent in the first quarter, which the retail pharmacy giant attributed to focusing more on healthcare products.
CVS said selling more expensive brand-name prescription drugs also helped boost revenue in its pharmacy segment, because it helped offset lower generic drug prices and lower payments from insurers.
During the earnings call, Mr. Merlo also said CVS’ health-related concept stores, which include blood testing labs, health screenings and wellness rooms for yoga, are performing well. As a result, he said the company plans to expand their presence.
Read the full report here.
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