: CVS Health beats profit and revenue views, books restructuring charge of nearly $500 million, and stock gains

Shares of CVS Health Corp. CVS rose 0.7% in premarket trading Wednesday, after the drug store chain and health care services company reported second-quarter profit and revenue that beat expectations, amid strength in the health care benefits business. Net income fell to $1.90 billion, or $1.48 a share, from $3.03 billion, or $2.29 a share, in the year-ago period. Excluding nonrecurring items, such as a $496 million restructuring charge, adjusted EPS of $2.21 topped the FactSet consensus of $2.12. Total revenue grew 10.3% to $88.92 billion, well above the FactSet consensus of $86.41 billion, as health care benefits revenue rose 17.6% and revenue for both the health services and pharmacy and consumer wellness segments rose 7.6%. For 2023, the company affirmed its adjusted EPS guidance range of $8.50 to $8.70. Regarding its restructuring plan aimed at streamlining the operation, improving efficiency and cutting costs, and is expected to be substantially completed in 2023, CVS determined it would terminate certain initiatives. The stock has dropped 20.7% year to date through Tuesday, while the S&P 500 SPX has advanced 19.2%.

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