Dive Brief:
- CVS Health Corp. reported its first quarter earnings Friday, with results beating expectations.
- Year-over-year net revenues increased 11.1% to $36.6 billion, and operating profit increased 5.3% to $2.1 billion.
- Revenues from its pharmacy services segment increased 18% to $29.9 billion in the first three months of 2015, while revenues from its retail segment increased 2.9% to $17 billion in the same period.
Dive Insight:
While some questioned CVS' decision to discontinue cigarette sales beginning September last year, it seems that the drug-store retailer's Medicaid business is offsetting some costs of this move.
The company is striving to become more of a healthcare resource rather than a typical retailer, offering specialty pharmacy services, expanding its medical clinics, and changing its name from CVS Caremark to CVS Health last year.