Please do not leave this page until complete. This can take a few moments.
Pharmacy giant CVS Health Corp. on Wednesday said it will close 22 “underperforming” drugstores in early 2020, adding to the 46 stores it shuttered earlier this year.
The Rhode Island-based retail pharmacy and benefits manager, which now has a major Hartford presence following its $69 billion purchase of health insurer Aetna last year, did not disclose which sites would be closed in 2020.
CVS, which operates 9,900 retail locations and 1,100 walk-in medical clinics across the country, said it already recorded a $96 million impairment charge related to the planned closure of the 22 stores. That’s in addition to a $135 million charge the company took in the first quarter from 46 store closures earlier this year.
CVS is not the only pharmacy operator closing locations.
Walgreens in recent months announced it will close about 200 locations in the U.S. in an effort to cut costs.
“We believe these decisions will generate enhanced longer-term performance,” CVS CFO Eva Boratto said Wednesday in a third-quarter earnings call with investors. “Our real estate footprint remained very productive, and we will look for opportunities to further improve the performance in our portfolio.”
CVS also announced Wednesday that its third-quarter profits rose 10.1 percent thanks to its recent takeover of Aetna.
In the July-September period, CVS reported net income of $1.53 billion, or $1.17 a diluted share, up from $1.39 billion, or $1.36 a diluted share, a year earlier.
CVS said revenues rose 36.5 percent to $64.81 billion in the quarter, which beat Wall Street estimates of $63.03 billion, according to Zacks Investment Research.
Its healthcare division generated $17.1 billion in revenue, up from $641 million in the year-ago period. That increase was driven by its purchase of Aetna.
CVS said its pharmacy services segment recorded over $36 billion in revenue, up 6.4 percent; and retail/LTC notched $21.5 billion, up 2.9 percent.
CVS’ higher revenues, however, were partially offset by a nearly 73 percent increase in operating expenses driven, in part, by costs associated with its Aetna purchase and a $205 million pre-tax loss on the July sale of its Brazilian subsidiary, Drogaria Onofre.
“As we approach the first anniversary of the Aetna acquisition, we are increasingly confident in the strength of our broad and differentiated assets as a combined company and our ability to deliver compelling value to our customers and the communities we serve,” CVS CEO Larry Merlo said in an earnings release.
CVS raised its full-year earnings forecast from the range of $6.89 to $7 to $6.97 to $7.05.
CVS shares of $70.42 were up 4.60 percent as of about 10 a.m. Wednesday, according to Nasdaq.
The Hartford Business Journal 2025 Charity Event Guide is the annual resource publication highlighting the top charity events in 2025.
Learn moreHartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
SubscribeDelivering vital marketplace content and context to senior decision-makers throughout Connecticut ...
All Year Long!
The Hartford Business Journal 2025 Charity Event Guide is the annual resource publication highlighting the top charity events in 2025.
Hartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
Delivering vital marketplace content and context to senior decision-makers throughout Connecticut ...
All Year Long!
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments