5 Stocks Drawing Attention After Topping Quarterly Expectations

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1. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 61

CVS Health Corporation (NYSE:CVS) recently delivered impressive profit and sales for the fourth quarter, helped by elevated demand for coronavirus vaccines and home-testing kits. The Woonsocket-based healthcare giant earned $1.98 per share on an adjusted basis, up from $1.30 per share in the fourth quarter of 2020.

Revenue for the quarter jumped 10.1 percent on a year-over-year basis to $76.6 billion. Analysts were expecting CVS Health Corporation (NYSE:CVS) to post earnings of $1.93 per share on revenue of $75.67 billion.

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CVS Health Corporation (NYSE:CVS) also released its segment-wise sales performance. Revenue from its health care benefits segment rose 8.4 percent, while revenue from the pharmacy services segment increased 8.2 percent. In comparison, retail revenue jumped 12.7 percent in the quarter.

Among other updates, CVS Health Corporation (NYSE:CVS) reported that it administered over 20 million coronavirus vaccines during the quarter, significantly higher than around 11 million in the third quarter and 17 million in the second quarter.

Looking forward, CVS Health Corporation (NYSE:CVS) expects a drop of 70 – 80 percent in the number of vaccines it will administer in the current fiscal year. The in-store diagnostic testing for 2022 is also expected to decline in the range of 40 – 50 percent versus last year. The weak outlook sent CVS stock down more than five percent on Wednesday, February 9, 2022.

Speaking on the results, CEO Karen Lynch said in a statement:

“We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health. That’s clearly reflected in our performance, but more importantly in our potential.”

You can also take a peek at 10 Best Dividend Stocks According to Thomas Steyer’s Farallon Capital and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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