By Dhirendra Tripathi
Investing.com – CVS Health stock (NYSE:CVS) traded 2.3% lower in premarket Wednesday as the company repeated its annual guidance while trimming its expectations for cash flow, notwithstanding a strong close to 2021.
The pharmacy chain cut the botttom end of its forecast range for cash flow from operations this year by $500 million to $12 billion, but kept the higher end of the range unchanged at $13 billion. That equates to a central forecast of $12.5 billion, rather than the $12.75 billion previously estimated.
For the year, CVS administered over 59 million Covid-19 vaccines and more than 32 million tests to detect coronavirus. That effort allowed the drugstore chain to close the year with $8.4 in adjusted profit per share. The market expected the company to build on it since Omicron still lingers but CVS is sticking to its EPS guidance of $8.2 at midpoint of the range.
The company had in December warned of a decline in Covid vaccinations and testing in 2022 and executives told an analyst call that it now expects to administer 70% to 80% fewer COVID-19 vaccines in 2022 compared with last year. In-store diagnostic testing could fall 40% to 50%.
Total revenue rose 10% to nearly $77 billion on higher demand for Covid-19 tests and vaccinations.
The company administered over 8 million Covid-19 tests and over 20 million coronavirus vaccines across the U.S. during the quarter.
Pharmacy services revenue rose 8% to cross $39 billion on processing more claims, partially offset by pricing pressures.