CVS Health will start raising his minimum wage starting in July 2022 to $15 an hour, with incremental increases slated for this month as well.
The move to $15 an hour next year will result in a more than 60% increase in the minimum hourly wage from the company over a four-year period. The new wage structure will include additional increases that lead to higher starting hourly rate for roles such as pharmacy technicians and call center representatives. The health care giant notes that approximately 65% of its hourly employees are already making more than $15 an hour.
Attracting and retaining top talent across our businesses is critical as we continue to redefine what it means to meet people's health needs, said CVS Health President and CEO Karen Lynch in a statement. These wage increases will have a meaningful impact on our colleagues and their families while helping the communities we serve prosper.
In addition to the wage boost, CVS will completely eliminate high school diploma or GED requirements for entry-level positions, and will remove the GPA requirement for university recruitment.
The announcement comes after the company's revenue rose 11.1% to $72.6 billion in the second quarter, compared with $65.3 billion in the third quarter of 2013. CVS Health reported net income of $2.79 billion, or $2.10 diluted earnings per share, compared to $2.96 billion, or $2.26 diluted earnings per share, a year ago. On an adjusted basis, earnings per share for the second quarter was $2.42. Same store sales rose 23%, compared to 2.4% a year ago.
CVS Health's retail and long-term care segment has posted revenue of $24.7 billion, up from $21.6 billion a year ago, a 14.2% increase year over year driven by a surge in prescription volumes, COVID - 19 vaccinations and diagnostic testing and high front store revenues across all product categories. During the second quarter, CVS Health released more than 6 million COVID- 19 tests and nearly 17 million covid-19 vaccines nationwide and filled 394.4 million prescriptions.
Meanwhile, its pharmacy services and health care benefits segments posted total revenues of $38.3 billion and $20.5 billion, respectively, up from $34.8 billion and $18.4 billion a year ago.
What are the clear advantages for CVS Health in fiscal 2021 with the full year earnings guidance now expected in the range of $6.35 to $6.45, up from $6.24 to $6.36, and the adjustment earnings per share in the range of $7.70 to $7.80, up from $7.56 to $7.68 onwards? For the full year money flow is expected to be between $12 billion to $12.5 billion, compared to previous guidance of $12.5 billion to $13 billion.
Shares of CVS have tumbled during the trading session on Wednesday after the wage and earnings announcements.