CVS Health on Wednesday cut its 2024 earnings outlook and announced its goal to cut $2 billion in costs through a multi-year productivity initiative as medical costs continue to rise. CVS reported that its adjusted earnings for the year will now be in the range of $6.40 to $6.65 per share, down from its earlier projection of at least $7 per share. This change reflects the "continued pressure in the Health Care Benefits segment," the company said.As part of its cost-cutting efforts, the retail pharmacy chain ...

CVS Health (CVS) reported $91.23 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 2.6%. EPS of $1.83 for the same period compares to $2.21 a year ago.The reported revenue represents a surprise of -0.35% over the Zacks Consensus Estimate of $91.56 billion. With the consensus EPS estimate being $1.74, the EPS surprise was +5.17%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

KEY TAKEAWAYSCVS Health shares lost ground in early trading Wednesday after the pharmacy giant slashed its 2024 earnings guidance again amid increased medical costs.The company reported revenue for the second quarter that missed analysts' estimates, though earnings per share beat projections.CVS also announced the departure of the head of its Aetna unit. CVS Health (CVS) shares lost ground in early trading Wednesday after the pharmacy giant slashed its 2024 earnings guidance again amid increased medical cos ...

CVS Health Corporation (CVS) posted adjusted earnings per share (EPS) of $1.83 in the second quarter of 2024, down 17.2% year over year. However, the metric topped the Zacks Consensus Estimate by 5.2%. The adjusted EPS figure considers certain asset amortization costs, loss on assets held for sale and other adjustments.On a reported basis, the company’s GAAP earnings were $1.41, down 4.7% year over year.RevenuesRevenues in the second quarter rose 2.6% year over year to $91.23 billion. However, the top line ...

CVS Health (CVS) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.17%. A quarter ago, it was expected that this drugstore chain and pharmacy benefits manager would post earnings of $1.69 per share when it actually produced earnings of $1.31, delivering a surprise of -22.49%.Over the ...

About this content About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business outpu ...

Revenue Growth - Total revenues increased by $2.3 billion, or 2.6%, in Q2 2024 compared to the prior year, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments[183] - Total revenues increased by $5.5 billion, or 3.1%, in the first half of 2024 compared to the prior year, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments[187] - Total revenues increased by $5.7 billion, or 21.4%, in the three months ended June 30, 2024, driven by growth in the Medicare and Commercial product lines[209] - Total revenues increased by $12.1 billion, or 23.0%, in the six months ended June 30, 2024, driven by growth in the Medicare and Commercial product lines[214] - Total consolidated revenues for the six months ended June 30, 2024, were $179,671 million, compared to $174,199 million for the same period in 2023[199] - Total revenues for the Health Care Benefits segment reached $32,475 million for the three months ended June 30, 2024, up from $26,747 million in the same period of 2023[199] Operating Expenses - Operating expenses rose by $465 million, or 4.7%, in Q2 2024, primarily due to increased expenses to support business growth[183] - Operating expenses increased by $1.2 billion, or 6.0%, in the first half of 2024, largely due to expenses associated with the acquisition of Oak Street Health[188] - Operating expenses increased by $952 million, or 12.1%, in the six months ended June 30, 2024, primarily due to increased expenses to support business growth[216] - Operating expenses increased by $55 million, or 6.9%, in the three months ended June 30, 2024, primarily due to expenses associated with Oak Street Health[225] - Operating expenses increased by $357 million, or 26.8%, in the six months ended June 30, 2024, mainly due to expenses associated with Oak Street Health[231] Operating Income - Operating income decreased by $189 million, or 5.8%, in Q2 2024, mainly due to declines in the Health Care Benefits and Pharmacy & Consumer Wellness segments[184] - Operating income decreased by $1.4 billion, or 20.4%, in the first half of 2024, primarily due to declines in the Health Care Benefits and Health Services segments[189] - Adjusted operating income for the Health Services segment was $1,915 million for the three months ended June 30, 2024, compared to $1,894 million for the same period in 2023[199] - Adjusted operating income decreased by $603 million, or 39.1%, in the three months ended June 30, 2024, primarily due to increased utilization and the impact of Medicare Advantage star ratings[213] - Adjusted operating income decreased by $1.7 billion, or 50.4%, in the six months ended June 30, 2024, primarily due to increased utilization and unfavorable Medicare Advantage star ratings[217] - Adjusted operating income decreased by $296 million, or 8.3%, in the six months ended June 30, 2024, primarily driven by pharmacy client price improvements and the loss of a large client[231] Interest Expense - Interest expense increased by $46 million, or 6.7%, in Q2 2024, attributed to higher debt from long-term debt issued for acquisitions[185] - Interest expense rose by $173 million, or 13.6%, in the first half of 2024, driven by long-term debt issued for acquisitions[190] Tax Rate - The effective income tax rate decreased to 24.3% in Q2 2024 from 25.5% in Q2 2023, primarily due to a state tax settlement[186] - The effective income tax rate increased to 26.2% for the six months ended June 30, 2024, compared to 25.6% for the same period in 2023[191] Membership and Utilization - Medicare Advantage plan membership enrollment exceeded expectations, with elevated utilization levels expected to pressure the Health Care Benefits segment for the remainder of 2024[193] - The Company's Medicaid business is facing medical cost pressures due to higher acuity following member redeterminations, with uncertain timing for offsetting these pressures through state rate updates[193] - Medical membership as of June 30, 2024, was 27.0 million, an increase of 200,000 members compared to March 31, 2024, and an increase of over 1.3 million members compared to June 30, 2023[220] - Total medical membership includes 4,342,000 in Medicare Advantage and 2,090,000 in Medicaid as of June 30, 2024[218] Acquisitions and Investments - The Company completed the acquisition of Signify Health and Oak Street Health in 2023, enhancing its health care delivery capabilities[176] - The Company has made significant investments in acquisitions, including Oak Street Health and Signify Health, to enhance its service offerings[278] Cash and Debt Management - The company had approximately $12.5 billion in cash and cash equivalents as of June 30, 2024[256] - The company repurchased an aggregate of 39.7 million shares of common stock for approximately $3.0 billion during the six months ended June 30, 2024[268] - The company issued $5.0 billion in senior notes on May 9, 2024, for general corporate purposes[263] - As of June 30, 2024, the company's long-term debt was rated "Baa2" by Moody's and "BBB" by S&P, with a stable outlook[265] Market Risks and Strategic Focus - The Company emphasizes that actual results could differ materially from estimates and assumptions used in preparing financial statements[273] - The Company is subject to various risks and uncertainties that could adversely affect its business and financial condition[280] - The Company plans to continue exploring new product development and market expansion strategies[278] - The Company intends to maintain a focus on shareholder value enhancement through strategic initiatives and operational improvements[278]

Exhibit 99.1 CVS HEALTH CORPORATION REPORTS SECOND QUARTER 2024 RESULTS AND REVISES FULL-YEAR 2024 GUIDANCE Financial Highlights • Second quarter total revenues increased to $91.2 billion, up 2.6% compared to the prior year • Second quarter GAAP diluted EPS of $1.41 and Adjusted EPS of $1.83 • Generated year-to-date cash flow from operations of $8.0 billion 2024 Full-Year Guidance • Revised GAAP diluted EPS guidance to a range of $4.95 to $5.20 from at least $5.64 • Revised Adjusted EPS guidance to a range ...

Analyst Estimates for Q2 2024Q1 2024Q2 2023Revenue$91.54 billion$88.44 billion$88.92 billionDiluted EPS$1.3488 cents$1.48Net Income$1.69 billion$1.12 billion$1.91 billion Key Metric: Net Income CVS lowered its projections for full-year earnings per share (EPS) in its last two earnings reports, citing higher-than-expected payouts for insurance claims as Americans undergo procedures covered by insurance at a greater rate than during the pandemic. The company said in each report that it was likely that medi ...

NEW YORK, Aug. 6, 2024 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in CVS Health Corporation ("CVS" or the "Company") (NYSE: CVS) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of CVS investors who were adversely affected by alleged securities fraud between May 3, 2023 and April 30, 2024. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/cvs-health-corporation-lawsuit-submission-fo ...