Summary
CVS Health Corporation reported solid revenue growth for the nine months ended September 30, 2021, with total revenues increasing by 8.2% to $215.5 billion, driven by strong performance across all segments. Net income attributable to CVS Health saw a comparable increase of 6.4% to $6.6 billion. The company experienced a notable goodwill impairment of $431 million in the Retail/LTC segment, impacting operating income. Despite the goodwill impairment, the company demonstrated resilience with increased net cash provided by operating activities, reaching $14.3 billion for the nine-month period, an increase of 16.0% year-over-year. This robust operational cash flow supports the company's financial flexibility and ability to manage its debt obligations, which were reduced during the period. Investors can take comfort in the continued revenue growth and strong operating cash flow generation, though the goodwill impairment warrants attention regarding the long-term care business outlook.
Financial Highlights
55 data points| Revenue | $73.79B |
| Cost of Revenue | $45.01B |
| Gross Profit | $28.78B |
| Operating Expenses | $70.73B |
| Operating Income | $3.06B |
| Interest Expense | $602.00M |
| Net Income | $1.60B |
| EPS (Basic) | $1.21 |
| EPS (Diluted) | $1.20 |
| Shares Outstanding (Basic) | 1.32B |
| Shares Outstanding (Diluted) | 1.33B |
Key Highlights
- 1Total revenues for the nine months ended September 30, 2021, increased by 8.2% to $215.5 billion, compared to $199.2 billion in the prior year.
- 2Net income attributable to CVS Health increased by 6.4% to $6.6 billion for the nine months ended September 30, 2021.
- 3Net cash provided by operating activities increased significantly by 16.0% to $14.3 billion for the nine months ended September 30, 2021.
- 4The company recorded a goodwill impairment charge of $431 million in the third quarter of 2021 related to the LTC reporting unit.
- 5Interest expense decreased by 17.6% for the three months ended September 30, 2021, and 15.0% for the nine months ended September 30, 2021, reflecting reduced debt levels.
- 6Medical membership increased by 427,000 members year-over-year as of September 30, 2021, primarily driven by Medicare and Medicaid product lines.
- 7Pharmacy claims processed increased by 6.9% for the three months and 5.6% for the nine months ended September 30, 2021, reflecting growth in pharmacy services.