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By Dhirendra Tripathi
Investing.com – CVS Well being inventory (NYSE:) traded 2.4% increased in Thursday’s premarket as the corporate promised to return more cash to shareholders via increased dividends and a $10 billion buyback.
The pharmacy chain additionally stated it would meet the highest finish — $290.3 billion — of its current-year income estimates on the very least. Equally, it expects to hit the excessive finish of the adjusted EPS steering too ($8) for the yr whereas it held out hope of exceeding it.
The corporate is holding its 2021 Investor Day at present and issued an announcement forward of it. CVS’s optimistic outlook comes amid a report interval for the chain and its rivals together with Walgreens (NASDAQ:), all of whom have benefited from the Covid-19 fallout and considerations round well being arising out of the pandemic.
The corporate additionally initiated steering for the subsequent yr, projecting income of round $309 billion.
It guided for adjusted earnings per share of $8.20 at midpoint of the vary for the subsequent monetary yr.
As a part of its long-term progress trajectory, CVS is focusing on a return to low double-digit adjusted EPS progress in 2024.
The corporate stated it would enhance its yearly dividend by 10% to $2.20, efficient with the subsequent dividend distribution on February 1.
Final month, the corporate stated it would shut 900 shops over three years below its plan to shift to digital.
The corporate plans to show a few of its pharmacies into models that supply a spread of medical providers, from administering photographs to conducting checks.
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