Drug-store giant CVS Health's second-quarter profit declined, largely due to paying down debt, but Wall Street welcomed the company's increased adjusted earnings forecast.
The company posted net income of $0.9 billion, down 27.3% compared to a year earlier. Profit would have increased without a $542 million payment to extinguish debt.
CVS posted earnings-per-share of 86 cents, below S&P Global Market Intelligence analyst estimates of $1.18, which had not taken into account the effect of the debt payments.
More importantly, the company raised its full-year adjusted earnings-per-share estimate from a previous range of $5.73 to $5.89 to a new range of $5.81 to $5.89.
CVS stock jumped 0.6% to $94.02 in pre-market trading.
"I'm very pleased with our solid second quarter results across the enterprise," CVS CEO Larry Merlo said in a statement.
The nation's largest drug store chain recorded a 17.6% increase in net revenue for the quarter, compared to the same period a year earlier, to $43.7 billion. Pharmacy network claims jumped 22.6%, fueling most of the revenue uptick.
The revenue performance fell short of S&P estimates of $44.3 billion.
CVS opened 20 new drug stores, closed 10 and relocated nine during the quarter. It had 9,652 locations, including pharmacies inside Target stores, as of June 30.