Executive Summary

• CVS Health reported 2Q19 revenues of $63.4 billion, up 35.2% year over year and ahead of the consensus estimate. Diluted EPS was $1.49, versus a loss per share of $2.52 in 2Q18.
• CVS closed its acquisition of Aetna in November 2018 and was the primary growth driver during the quarter, along with increased volumes and brand name drug price inflation.
• For FY19, CVS narrowed its adjusted EPS guidance range to $6.89-7.00 from $6.75-6.90.