CVS Health swings to profit in 4th quarter

| February 12, 2020 4:30 AM

CVS Health swung to a profit in its fourth quarter and is starting the new year with an earnings forecast more in line with what Wall Street expects.

The drugstore chain and pharmacy benefit manager said Wednesday that it expects adjusted earnings for 2020 to range between $7.04 and $7.17 per share.

Analysts expect, on average, earnings of $7.15 per share, according to FactSet. The company’s stock got off to a rough start last year, when CVS Health debuted a lighter than expected forecast.

CVS Health also booked a $2.2 billion charge in the final quarter of 2018 from a business that provides services to long-term care facilities. That contributed to a loss of $419 million.

In the last quarter of 2019, 29CVS Health Corp. earned $1.74 billi31.

Removing certain items, earnings were $1.73 per share, the Woonsocket, Rhode Island, company said Wednesday.

Revenue climbed to $66.89 billion from $54.42 billion.

Analysts polled by FactSet expected a profit of $1.68 per share on revenue of $63.93 billion.