CVS Health Corp posted its second-quarter earnings on Wednesday, beating Wall Street expectations. The pharmaceutical chain reported a profit of $2.21 per share, beating analysts’ estimates of $2.11 per share.
Sales for the company’s health services segment rose 7.6% to $46.22 billion compared to the same quarter a year earlier. This includes sales at the company’s retail pharmacy chain as well as its pharmacy benefit management (PBM) business units.
Despite the group’s strong second-quarter results, CVS expressed concern over its costs for the quarter. Following the company’s acquisitions of primary-care provider Oak Street Health and home healthcare services firm Signify Health, CVS announced that it would begin to roll out a cost-cutting program.
The company recorded a further $496 million in pre-tax charges related to its cost-cutting agenda which began during the second quarter. CVS added that it would be pausing any acquisitions in the near term to keep costs minimal.