by Paige Minemyer | May 1, 2019 7:14am
CVS Health reported a
profit boost and higher revenues in its first full quarter of combined
operations with Aetna.
The company earned $1.4
billion in net income in the first quarter of 2019 compared to $998 million in
the same period of 2018, an increase of 43%, according to its latest earnings data.
The main driving factor
was higher operating incomes as a result of the integration with Aetna, though
that also led to higher expenses.
Revenues were up notably
from the first quarter of 2018, CVS reported, also driven by the Aetna deal.
Revenues increased by 34.8% to nearly $61.7 billion.
CEO Larry Merlo said in
the announcement that the first quarter combined with Aetna was a success in
"many ways" and also highlighted CVS' new primary care concept
stores.
"With our
differentiated collection of health care assets we are uniquely positioned to
lead the transformation of the U.S. health care system," Merlo
said. "We remain relentlessly focused on creating value for clients
and customers while driving both near and longer-term returns for our
shareholders."
Though CVS and Aetna have
been allowed to integrate their assets, the specter of a federal judge does
linger over the deal. A District of Columbia judge is currently reviewing the
merger and will allow hearings in the case.
Amid the financial
increase, CVS has slightly boosted its 2019 forecasts. It raised projected
earnings per share from between $6.68 and $6.88 to between $6.75 and $6.90.
https://www.fiercehealthcare.com/payer/cvs-sees-profit-revenue-boost-first-full-quarter-combined-operations-aetna
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