Enjoy CVS’s Good Quarter, But Expect Disruption
Policy and drug-pricing uncertainties loom as the company reshapes its business following the $70 billion purchase of Aetna.
A company and industry in flux.
Photographer: Victoria Arocho/Bloomberg
CVS Health Corp. shares took a beating in February after the pharmacy and health-insurance giant delivered a disappointing full-year earnings forecast. So it was a relief of sorts for investors on Wednesday when the company reported first-quarter results that beat Wall Street’s sales and profit estimates. CVS even adjusted its full-year guidance a little higher.
The first quarter marked CVS’s first full reporting period since closing its $70 billion acquisition of insurer Aetna Inc., and one might be tempted to interpret the upbeat results as validation of the company’s transformational M&A strategy. But reshaping its business is a multiyear project, and a few months of results can only tell investors so much.