Summary
CVS Health Corporation (CVS) reported a strong financial performance for the fiscal year ending December 30, 2021, with total revenues increasing by 8.7% to $292.1 billion. This growth was driven by robust performance across all three operating segments: Health Care Benefits, Pharmacy Services, and Retail/Long-Term Care (LTC). The company saw increased prescription volumes, growth in specialty pharmacy, and significant contributions from COVID-19 testing and vaccination services, which helped offset pressures like pharmacy reimbursement rates. Despite a notable store impairment charge of $1.4 billion and a goodwill impairment charge of $431 million related to the LTC business, the company demonstrated resilience. The Health Care Benefits segment experienced a rise in MBR due to increased COVID-19 related costs, but growth in government services partially mitigated this. The company also announced a 10% increase in its quarterly cash dividend and is actively managing its capital structure, including debt repayment and share repurchases. Looking ahead, CVS Health anticipates continued growth, particularly in its Medicare offerings and digital capabilities, while navigating ongoing regulatory and economic uncertainties.
Financial Highlights
56 data points| Revenue | $292.11B |
| Cost of Revenue | $175.80B |
| Gross Profit | $116.31B |
| Operating Expenses | $278.80B |
| Operating Income | $13.31B |
| Interest Expense | $2.50B |
| Net Income | $8.00B |
| EPS (Basic) | $6.07 |
| EPS (Diluted) | $6.02 |
| Shares Outstanding (Basic) | 1.32B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1Total revenues increased by 8.7% to $292.1 billion, driven by growth across all segments.
- 2The company administered over 59 million COVID-19 vaccines and 32 million COVID-19 tests in 2021.
- 3Despite a $1.4 billion store impairment charge and a $431 million goodwill impairment charge, adjusted operating income increased by 8.1% to $17.3 billion.
- 4The Health Care Benefits segment saw an increase in medical membership to 23.8 million, driven by Medicare and Medicaid growth.
- 5Pharmacy Services segment's adjusted operating income increased by 20.6% to $6.9 billion, benefiting from improved purchasing economics and specialty pharmacy growth.
- 6Retail/LTC segment's adjusted operating income increased by 24.0% to $7.6 billion, boosted by COVID-19 related services and increased prescription and front store volume.
- 7CVS Health announced a 10% increase in its quarterly cash dividend to $0.55 per share, effective in 2022.