CVS Health issues tepid 2022 profit forecast

Shopping baskets are seen in a CVS pharmacy store in Manhattan, New York, U.S., November 15, 2021. REUTERS/Andrew Kelly

Dec 9 (Reuters) – Drugstore operator CVS Health Corp (CVS.N) on Thursday issued its adjusted earnings forecast for 2022, which were largely below estimates.

The company expects 2022 full-year adjusted profit between $8.10 and $8.30 per share, the midpoint of which was below analysts’ estimates of $8.24.

Shares of the company were up 2.36% at $95.3 in premarket trading, after it raised its 2021 profit forecast.

The drugstore chain has seen its profit weighed down by higher medical costs in its Aetna insurance businesses due to the pandemic.

However, last month, CVS said it expected volatile medical costs in its health insurance unit to stabilize after the COVID-19 crisis drove them up this year.

CVS raised its current-year adjusted profit forecast to be at least $8.00 per share from prior guidance of $7.90 to $8.00.

Reporting by Mrinalika Roy in Bengaluru; Editing by Krishna Chandra Eluri

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