Yahoo Finance's Brian Cheung and Akiko Fujita discuss CVS earnings beating estimates due to increased retail traffic as Americans get booster shots and a pick up in prescription volume.
BRIAN CHEUNG: I want to highlight a trending ticker on this Wednesday morning. Shares of CVS Health are on the move, down over 5% despite the broader markets being in the green. They did beat estimates on the top and bottom lines. Keep in mind that the company is downsizing, so they actually had operating income dip 11.7% quarter over quarter. That's due to writedowns of leases.
You could see the not so pretty stock reaction there, but still, the underlying business actually looked pretty OK. They had more of prescription and front store volume, and they actually saw a boost in retail because of people coming in to get their booster shots. So that brought people to the store, but interestingly, that may have pulled forward some of the demand that perhaps they were expecting in the next quarter or so. That might be taking some steam out of Q1. So very interesting to see on that front. Akiko, I don't know if you had any thoughts on CVS, but interesting to see the market action this morning.
AKIKO FUJITA: Well, the booster shot comment is an interesting one, right? I mean, I'm guilty. I have gone into CVS just waiting to get my name called, and then you end up buying something. So that's an interesting comment from CVS there. I mean, I would imagine that the traffic is up in a big way, largely because so many people are having to go to CVS for those booster shots, as well as testing kits.
BRIAN CHEUNG: Yeah, I think I got my booster shot at Costco, and I got, like, a massive, big pack of paper towels while I was there. So certainly something to be said there. We'll see what--
AKIKO FUJITA: Costco is dangerous. Costco is another story.
BRIAN CHEUNG: Can't go in there alone. Got to go in there with a friend to keep you accountable. That's a pro tip.