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An earnings report walked into a…walkout? On the last day of a nationwide CVS and Walgreens pharmacy staff walkout, CVS Health published a mostly sturdy Q3 earnings report.
The healthcare giant posted sales of $89.8 billion for the quarter, an almost 11% YoY jump. The Rhode Island-based company saw growth across its healthcare benefits, pharmacy and consumer wellness, and health services segments; the latter made $46.9 billion in the quarter, up 8% from Q3 2022.
“Our colleagues helped us deliver another quarter of positive results across our business areas,” Karen Lynch, CVS Health president and CEO, said in a statement. “Despite a challenging business environment, we continue adapting to the changing needs of our consumers by connecting our care delivery capabilities in communities across the country, broadening access to care and lowering costs.”
While the report was largely strong, CVS stuck to the lower end of its previous 2024 profit forecast, citing uncertainty about consumer usage of Medicare insurance plans, among other headwinds.
In the company’s earnings call, interim CFO Tom Cowhey said “it is prudent for investors to ground their expectations for 2024 adjusted EPS at the low end of our previously communicated preliminary guidance range of $8.50 to $8.70.”
“Mizuho analyst Ann Hynes said this was the third time the company had cut its 2024 forecast, disappointing Wall Street,” according to Reuters.
Executives didn’t dwell on the walkouts during the company’s earnings presentation, but employee dissatisfaction could weigh on CVS and other drugstore chains in future reports.
Pharmacy staff members who participated in the walkout were protesting alleged “harsh working conditions” that “put the health of their customers at risk,” according to CVS and Walgreens employees who spoke to CNN.
For the most part, Walgreens and CVS workers aren’t unionized, making a more widespread walkout difficult to coordinate. Leading up to the walkout, a Walgreens organizer told CNN that employees at more than 500 Walgreens stores expressed “interest and solidarity,” but that many probably wouldn’t take part.