CVS Health (NYSE: CVS) on Tuesday projected double-digit growth to its investors once Aetna is successfully integrated into the company within a few years.
CVS recently acquired Aetna, a health insurance company. The Company said on Tuesday it expects the deal to result in USD 300 Million to USD 350 Million in synergies in 2019 and forecasts USD 800 Million in the upcoming year. The Company also rehashed their forecast of USD 6.75 to USD 6.90 per share in 2019, in comparison to the USD 6.85 that analysts polled by Refinitiv expect. For 2020, the Company expects adjusted earnings at a minimum of USD 7. In 2022 and the following years, CVS expects “low-double digit percent” growth. Shares of the company rose 3.6% in morning trading.
Through the acquisition, the Company is making an effort to combine insurance and prescription drug benefits and help them compete in the dynamic healthcare industry. However, investors are skeptical and have been pressing the Company for further information concerning the Company’s long term financial prospects. The Company also announced it will open 1,500 HealthHub stores by the end of 2021. These modified drug stores will be focused on health care services and products.
“Keep in mind we’re in the early innings of our transformational journey. This will be a multi-year journey with benefits building over time as we continue to build and refine new programs to better serve the needs of our stakeholders” said Larry Merlo, Chief Executive Officer of CVS Health.