CVS Health Reports Q3 Earnings Beat Despite Customer Losses; Cautions Prudence for 2024 Projections

Result reflecting strong performance by Health Services and Pharmacy & Consumer Wellness sectors; Recent acquisitions of Oak Street Health and Signify Health also contributing to growth.

CVS Health reported Q3 results with revenues growing 10.6% from the prior year to $89.76 billion, led by its Health Care Benefits segment where revenues rose 16.9% to $26.30 billion.
Despite recent customer losses, CVS continues to remain well positioned for significant additional cash flow generation, with analysts expecting the company to produce a similar amount of cash flow in 2024 to the $12.5-13.5 billion it expects from its operations in 2023.
CVS Health's solid operating performance also keeps the company on track to achieve its 2023 adjusted earnings guidance of $8.50-8.70 per share.
The acquisitions of Oak Street Health and Signify Health made notable contributions to growth in CVS's Health Services and Pharmacy & Consumer Wellness segments.
CVS Health anticipates adjusted 2024 earnings to trend towards the lower end of its previously communicated preliminary guidance range of $8.50-8.70, due to expected increased utilization of its Medicare Advantage business and loss of business from Centene and Blue Shield of California.