While the ongoing spread of the omicron variant of COVID-19 across the U.S. and around the world has severely hampered the retail sector and forced the corporate and education worlds to rethink their plans, it’s meant big business for CVS Health and other companies focused on healthcare.
CVS Health raised its full-year earnings guidance Tuesday (Jan. 11) to reflect the uptick it’s seen in the need for its services with the most recent surge in sickness and virus contraction, saying it expects shares to range from $5.87 to $5.92, up from the previous projection of $5.50 to $5.61.
The announcement came in an 8K filing with the Securities and Exchange Commission (SEC) before a virtual presentation at the J.P. Morgan Healthcare Conference Tuesday.
CVS’ sales have gotten a jolt since the start of the pandemic as customers have come to its stores in greater numbers for testing and vaccines. The company is also transforming its business model, closing about 900 stores over three years and focusing more on medical services.
New CVS Health CEO Karen Lynch said during Investor Day last month that the company is adapting quickly to changes in consumer habits and riding the momentum from a boost in consumer trust since the pandemic began.
Read more: CVS Expanding Healthcare Services, Expects Sales Jolt
CVS handed out more than 50 million COVID-19 vaccines and done about 29 million coronavirus tests since the pandemic started through the end of November, she said at the time, with those numbers likely to be even higher after the omicron surge. COVID-19 vaccine shots and tests have brought more than 32 million new customers into CVS stores.
CVS plans to add more subscription services and home healthcare as part of its shift toward health-related products and services. The company recently acquired pharmacy benefit manager Caremark and insurance company Aetna and several small drug store chains.
Meanwhile, CVS is using Microsoft’s Azure cloud computing platform and its customer data to create personalized care options for 100 million CVS shoppers.
See more: CVS Health and Microsoft Link Up to Speed Healthcare’s Digital Shift on Retail’s Frontlines
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