CVS Health Corp (NYSE:CVS) is scheduled to release its financial earnings for the third quarter of 2020 on November 6 at the market open and here is a rough idea of what to expect from the company.
There was a lot of disruption in 2020, particularly due to the coronavirus which negatively affected many businesses. Some businesses benefited from the situation and most of them are from the healthcare sector. Since CVS Health is one of the major healthcare companies and just like many, it was also affected by the coronavirus pandemic in one way or the other.
What to expect from the 3 2020 results
CVS Health responded promptly to the viral threat by shifting its resources and adjusting its strategy so that it could make it easier for patients to access vital medications despite the lockdown measures. These measures arguably helped to maintain the company’s performance during the lockdown measures. However, the derestriction of the lockdown measures allowed CVS Health to enjoy a strong bounceback from the previously slowed business during the lockdown.
The company previously reported positive earnings in Q2 2020 during which it achieved a 36.79% surge in earnings compared to the previous quarter. In fact, the company managed to beat analyst estimates in the last four consecutive quarters. The company reported $66.8 billion in revenue in Q1 2020 while its revenue dropped slightly to $65.3 billion in Q2 2020.
Going by the past performance and the company’s recovering performance due to the COVID19 derestriction, then it will likely continue to perform well and this should reflect in the company's Q3 2020 earnings report.
However, it would be wrong to assume that the performance will remain positive without analysis to back up those expectations. Despite reacting to the viral threat by adjusting its strategy, CVS Health still lost many potential revenue opportunities due to the decline in number of patient visits at CVS Health clinics.
With the economic reopening that happened in the second quarter and the eased restrictions, plus the anticovid measures taken at the clinics, the company should continue to experience recovery. This is the basis on which analysts would expect CVS Health to maintain its strong momentum observed in Q2 also in Q3 and possibly in Q4 2020.