CVS Health CVS got a boost Nov. 2 after the health services retailer reported third-quarter earnings that beat estimates across the board.
Sales were up 11% year over year to $89.76 billion while earnings of $2.21 per share were also up from last year's $2.09 per share.
Related: Walgreens, CVS latest problem will make getting prescriptions difficult
Also, Nov. 2 was the end of the planned three-day walkout by pharmaceutical employees of both CVS and rival Walgreens WBA. With the stock up 1.7%, at last check, and its employees back on the job, CVS is having a pretty good Thursday.
Still, CVS is facing “unprecedented demand and a clinical workforce shortage in the health care industry," a CVS spokesperson told CNBC recently. Employees at the company agree as long shift hours and not enough help has been one of the main complaints of those who walked off the job.
Thousands of workers at Walgreens and CVS are launching a 3-day walkout today.
— More Perfect Union (@MorePerfectUS) October 30, 2023
Across the country, pharmacists and technicians are protesting low pay, inconsistent hours, and an unmanageable workload.
Upwards of 5,000 workers are striking and protesting at CVS and Walgreens HQ. pic.twitter.com/sXrXnpdvtR
But CVS seems to also agree that the growth it has seen in its pharmacy segment is a direct result of the strength of its employees.
The company's pharmacy and consumer wellness segment saw revenue increase 6% year over year to $29 billion, but CVS Health is also nearly two-thirds of the way through its plan to close 900 stores, so on a same-store sales basis, the pharmacy and consumer wellness segment revenue has actually increased by 9%.
Image source: Shutterstock
"Our retail pharmacy business continues to execute and deliver strong results across scripts, service and our transformational initiatives. If you think about our same-store scripts, we grew 2.7%; and if you exclude COVID, we grew 3.5%," Prem Shah, CVS chief pharmacy officer, said during the company's earnings call.
"We know that service is a primary reason to retain and grow scripts."
Despite its admittance that it needs its pharmacists to continue to grow its business, the company also says it will have spent more than $1 billion on wage investments by the end of the year and that it continues to invest in technology designed to lessen the workload for its associates.
"It's clear based on the environment that this is the right thing to do (investing in worker wages) and we're committed to doing that," said interim CFO Thomas Cowhey.
Meanwhile, CVS and Walgreens employees where still protesting outside of corporate headquarters Nov. 2, with some protesters dressed in costumes in due to "fear of retaliation," according to protester and patient advocate, Loretta Boesing.
When asked what kind of retaliation they feared, Boesing said that "most fear getting fired or written up," and that some protesters "who've been outspoken have been hit with inspections from Boards that have resulted in a real threat to their licenses."
CVS employs more than 100,000 pharmacists and pharmacy technicians, according to CNBC, who make an average of $61.44 an hour.
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