CVS Health raises 2021 earnings outlook

Higher prescription drug sales, COVID-19 testing and vaccinations helped CVS report a quarterly profit Wednesday (August 4), as the firm raised its annual earnings forecast.

With almost half of all Americans now fully vaccinated, demand for prescription drugs and over-the-counter products at the company's pharmacies helped it recover from the declines seen during the height of the health crisis.

CVS Health raised its 2021 adjusted profit per share outlook to between $7.70 and $7.80, after it reported an 11.1% increase in quarterly revenue to $72.6 billion.

It warned, however, that COVID-19 vaccinations would slow in the second half of the year, while medical costs are expected to increase modestly at its health insurance unit.

Health insurers saw lower medical costs during the initial phase of the pandemic, as people deferred elective medical procedures.

But widespread vaccinations have led to demand for non-COVID healthcare services normalizing.