CVS raised its earnings forecast for 2021 on Tuesday, citing increased demand for COVID-19 vaccinations and over-the-counter testing as infections in the United States skyrocketed due to the rapidly spreading Omicron variant.
Just before noon, shares of the drugstore chain operator were up nearly 1% to $106.10.
The company now expects adjusted profit per share in the range of $8.33 to $8.38 in 2021, up from an earlier forecast of $8.
CVS attributed its strong retail segment performance to higher-than-expected coronavirus vaccinations in November and December, as well as increased demand for over-the-counter COVID-19 testing in the final month of 2021.
On the heels of similar remarks, rival Walgreens Boots Alliance raised its full-year adjusted profit growth forecast last week.
The drugstore behemoth reported that canceled elective surgeries had no negative impact on its health insurance business.
Despite higher coronavirus cases, CVS’s health insurance unit performed better than expected, particularly in the back half of the fourth quarter, as deferred elective procedures offset higher COVID-19 costs.