CVS Health Corporation announced results for the second quarter ended June 30, 2018.
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Net revenues for the three months ended June 30, 2018, increased 2.2%, or $1.0 billion, to approximately $46.7 billion, up from $45.7 billion in the three months ended June 30, 2017.
Consolidated operating loss for the three months ended June 30, 2018 was $1.6 billion, including the LTC goodwill impairment charge of $3.9 billion as well as $39 million in transaction and integration costs related to the proposed acquisition of Aetna.
Adjusted operating profit for the three months ended June 30, 2018 was $2.4 billion, an increase of $105 million, or 4.6%, compared to adjusted operating profit for the three months ended June 30, 2017.
Net loss for the three months ended June 30, 2018 was $2.6 billion, as compared to net income of $1.1 billion for the three months ended June 30, 2017.
The net loss in the three months ended June 30, 2018 was due to the operating loss discussed above, as well as a $228 million increase in interest expense, net, as compared to the corresponding period of the prior year, primarily resulting from the financing associated with the proposed acquisition of Aetna.
Adjusted income before tax for the three months ended June 30, 2018 was $2.3 billion, as compared to adjusted income before tax of $2.2 billion for the three months ended June 30, 2017.
Reflecting the goodwill impairment charge, the company revised full year GAAP operating profit to be down 39.25% to 40.75%, from down 0.25% to up 2.75%.
The company also revised full year GAAP diluted EPS from continuing operations to $1.40 to $1.50, including the goodwill impairment charge, from $5.11 to $5.32.
The company narrowed adjusted operating profit growth to down 0.75% to up 0.75% from down 1.5% to up 1.5% and narrowed and raised the mid-point of the range for full year Adjusted EPS guidance to $6.98 to $7.08 from $6.87 to $7.08.
The company also provided guidance for the third quarter of 2018. The company expects GAAP operating profit to decline in the range of 4.5% to 7.0% and adjusted consolidated operating profit to decline in the range of 2.5% to 5.0%.
Additionally, the company expects to deliver GAAP diluted EPS of $1.29 to $1.34 and Adjusted EPS of $1.68 to $1.73. ■