CVS beats, says Aetna deal will close before Thanksgiving
- CVS beat on both the top and bottom lines, and reiterated its full-year guidance.
- The company said its proposed acquisition of Aetna will close before Thanksgiving.
- Shares jumped as much as 3% before Tuesday's opening bell.
- Watch CVS trade live.
CVS posted third-quarter earnings that beat on both profits and sales, sending shares up as much as 3% before Tuesday's opening bell. The company also reiterated its full-year guidance.
Here are the key numbers, comparing to estimates from analysts surveyed by Bloomberg:
- Earnings per share: $1.73 ($1.71 expected)
- Revenue: $47.3 billion ($47.2 billion expected)
- Same-store sales growth: +6.7% (+5.6% expected)
- Same-store prescription volume growth: +9.2%
- Full-year EPS guidance: $6.89 to $7.08 ($7.05 expected)
"Strong revenue and adjusted EPS, along with significant cash flow year-to-date, demonstrate our success in driving value," CEO Larry Merlo said in a press release.
"Our year-to-date results continue to validate our confidence in the strength of our model. As we approach the closing of our transformative acquisition of Aetna, our integration teams are making great progress to assure that once final approvals are obtained, we can begin to execute on our integration plans."
CVS announced last month that it has entered into an agreement with the US Department of Justice that allows it to proceed with its proposed acquisition of Aetna, the nation's third-largest health insurance company, on the condition that Aetna sells its individual standalone Medicare Part D prescription-drug business.
Aetna has found a buyer for the business - a subsidiary of WellCare Health Plans - and so the transaction is expected to close prior to Thanksgiving, CVS said in Tuesday's press release.
CVS was up 3% this year through Monday.
Read more stories on CVS:
- CVS and Aetna are gaining ground after their $69 billion merger gets the green light
- VS is fending off Amazon in drug delivery
