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4w ago

CVS Health Beats Q1 Estimates and Raises Full-Year Profit Outlook

The healthcare giant reports improved insurance performance, announces ACA exchange exit, and continues legal and operational restructuring under CEO David Joyner.

A general view shows a sign of CVS Health Retail Pharmacy Customer Care Center, at CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023. REUTERS/Faith Ninivaggi/File Photo
FILE - The exterior view of a CVS branch is shown on Tuesday, May 16, 2023, in Pasadena, Calif. (AP Photo/Marcio Jose Sanchez)
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Overview

  • CVS Health reported first-quarter adjusted earnings of $2.25 per share, surpassing analysts' expectations of $1.70, with revenue of $94.59 billion exceeding projections of $93.64 billion.
  • The company raised its full-year adjusted earnings forecast to $6.00–$6.20 per share, up from its prior range of $5.75–$6.00 per share.
  • CVS’s insurance unit showed improvement, with its medical benefit ratio decreasing to 87.3% from 90.4% a year earlier, indicating higher profitability within the segment.
  • CEO David Joyner continues to implement a turnaround strategy, including cost-cutting measures, management restructuring, and strategic changes like the planned 2026 exit from Affordable Care Act exchanges.
  • The company is appealing a legal verdict against its Omnicare unit while its pharmacy benefit management arm adjusts its formulary by dropping Eli Lilly’s Zepbound and retaining Novo Nordisk’s Wegovy.