CVS Health quarterly sales rise 4pc on pharmacy boost

CVS Health Corp reported a 4% rise in fourth-quarter sales on Tuesday, helped in part by COVID-19 testing at its pharmacies.

However, the company's profit fell in the quarter ended Dec. 31, hurt by higher costs at its health insurance unit.

Last year, as people avoided visiting hospitals for scheduled procedures due to the pandemic, health insurers benefited from lower costs. But now, with COVID-19 vaccinations underway, non-urgent procedures are expected to bounce back to normal levels, leading to higher costs for health insurers.

CVS Health's net profit fell to $973 million, or 74 cents per share, in the reported quarter, from $1.75 billion, or $1.33 per share, a year earlier.

Sales rose to $69.55 billion from $66.89 billion.

The company expects 2021 adjusted profit of between $7.39 to $7.55 per share, compared with analysts' estimates of $7.54 per share, according to IBES data from Refinitiv.