CVS Health Corp (NYSE:CVS) posted a second-quarter earnings beat as it rolled out a restructuring plan aimed at cutting costs and streamlining its operations following its recent acquisitions of healthcare services company Signify Health and primary care provider Oak Street Health.
Revenue for the quarter rose 10.3% year-over-year to $88.9 billion, above the Wall Street consensus estimate of $86.41 billion, according to FactSet.
Earnings per share (EPS) topped expectations of $2.12 at $2.21 but were down from $2.53 in the year-ago quarter.
Its operating income fell from $4.67 billion in 2Q 2022 to $3.23 billion, which CVS noted was driven by declines in its Health Care Benefits and Pharmacy and Consumer Wellness segments, partially offset by increases in the Health Services segment.
The company also recorded a $496 million pre-tax restructuring charge.
CVS reaffirmed its adjusted EPS guidance of $8.50 to $8.70. The Street expects EPS of $8.58.
Despite the earnings beat, shares of CVS moved lower at the market opened on Wednesday, down 1.4% at US$72.94.
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