CVS Health Corporation (NYSE:CVS) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET Company Participants Larry McGrath - SVP & IR Karen Lynch - President, CEO Tom Cowhey - Interim CFO Prem Shah - EVP, Chief Pharmacy Officer, & President, Pharmacy and Consumer Wellness David Joyner - President, Pharmacy Services Conference Call Participants Justin Lake - Wolfe Research Lisa Gill - JP Morgan Nathan Rich - Goldman Sachs Kevin Caliendo - UBS Eric Percher - Nephron Research Elizabeth Anderson - Everco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to_________ Commission File Number: 001-01011 CVS HEALTH CORPORATION (Exact name of registrant as specified in its charter) Delaware 05-0494040 ...

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Financial Data and Key Metrics Changes - The company reported second quarter adjusted EPS of $2.21 and adjusted operating income of $4.5 billion, representing decreases of approximately 13% and 10% year-over-year respectively [8][21] - Total revenues for the second quarter reached nearly $90 billion, an increase of more than 10% year-over-year [21] - Year-to-date cash flow from operations was $13.3 billion, with expectations for strong full-year cash flow in the range of $12.5 billion to $13.5 billion [22][33] Business Line Data and Key Metrics Changes - In the healthcare benefits segment, revenues grew to $26.7 billion, an increase of nearly 18%, with adjusted operating income of $1.5 billion, a decline of approximately 20% year-over-year [9][23] - The health services segment generated revenues of approximately $46.2 billion, an increase of 7.6% year-over-year, with adjusted operating income growing 3.5% to nearly $1.9 billion [11][24] - The pharmacy and consumer wellness segment reported revenues of $28.8 billion, up nearly 8% year-over-year, with adjusted operating income declining approximately 17% [16][27] Market Data and Key Metrics Changes - Medical membership in the healthcare benefits segment increased to 25.6 million, reflecting broad-based growth across individual exchange, Medicare, and commercial membership [9][22] - The company successfully onboarded more than one million new members in its individual exchange offering, expanding to 12 states [7] Company Strategy and Development Direction - The company is focused on integrating acquired assets from Signify Health and Oak Street Health to enhance patient engagement and drive long-term growth [6][12] - The strategy includes expanding healthcare delivery assets and leveraging existing CVS Health resources to create synergies and improve care outcomes [6][15] - The company plans to open 50 to 60 Oak Street clinics in 2024, increasing access to care for Medicare members [16][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged emerging headwinds in Medicare Advantage and a changing consumer environment, leading to cautious guidance for 2024 [30][36] - The company reaffirmed its full-year 2023 adjusted EPS guidance range of $8.50 to $8.70, reflecting strong performance in pharmacy services despite challenges in other segments [8][31] - Management expressed confidence in the long-term strategy and the integrated model's ability to enhance patient engagement and care delivery [36] Other Important Information - The company announced a restructuring charge of nearly $500 million associated with cost optimization efforts, expected to generate over $600 million in run-rate savings beginning in 2024 [18][30] - The medical benefit ratio for 2023 is expected to be at the high end of the previous range due to higher Medicare Advantage utilization [31] Q&A Session Summary Question: Impact of changing consumer behavior and Medicare Advantage uncertainty - Management noted a pull-back in consumer behavior in June, reflecting economic volatility, and acknowledged higher than expected Medicare costs due to increased outpatient utilization [38][39] Question: Utilization of GLP1 drugs and its impact on the business - Management confirmed higher levels of GLP1 drug utilization but stated that pricing has been appropriately managed to mitigate risks [51][53] Question: Update on STARs performance and exchange business - Management reported positive internal indicators for STARs performance and continued cautious optimism for the exchange business, which has reached a million members [64][66] Question: Clarification on Medicare Advantage medical loss ratio and guidance changes - Management explained that the increase in guidance was primarily driven by changes in the Medicare MBR, with other lines of business performing in line with expectations [68][70] Question: Restructuring program savings and guidance revision - Management indicated that the restructuring savings would contribute to 2024 guidance, with specific impacts from higher utilization and reduced retail outlook considered in the revision [78]

Second quarter 2023 Earnings conference call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to_________ Commission File Number: 001-01011 CVS HEALTH CORPORATION (Exact name of registrant as specified in its charter) Delaware 05-0494040 (Stat ...

CVS Health Corporation (NYSE:CVS) Bernstein's 39th Annual Strategic Decisions Conference May 31, 2023 9:00 AM ET Company Participants Shawn M. Guertin - EVP and Chief Financial Officer Conference Call Participants Lance Wilkes - Bernstein Lance Wilkes Okay, looks like we are ready to go and mike is on and everything like that. Welcome everybody. I am Lance Wilkes, Healthcare Services Analyst for Bernstein and the pleasure of having a fireside chat here with CVS Health and so I am going to let Shawn introduc ...

CVS Health Corporation (NYSE:CVS) 2023 Bank of America Securities Health Care Conference Call May 10, 2023 11:40 AM ET Company Participants Shawn Guertin - Executive Vice President and Chief Financial Officer Conference Call Participants Mike Cherny - Bank of America Mike Cherny Thanks everyone for joining us for this session of the BofA Healthcare Conference. Mike Cherny, the Healthcare Tech and Distribution Analyst. It's my pleasure to have with us, CVS Health, Shawn Guertin, CFO. And then we have Tom Cow ...

CVS Health Corporation (NYSE:CVS) Q1 2023 Earnings Conference Call May 3, 2023 8:00 AM ET Company Participants Larry McGrath - SVP, Business Development and IR Karen Lynch - President and CEO Shawn Guertin - EVP and Chief Financial Officer Kyle Armbrester - CEO, Signify Health Mike Pykosz - CEO, Oak Street Health Daniel Finke - EVP and President, Health Care Benefits Michelle Peluso - EVP and Chief Customer Officer and Retail Co-President Prem Shah - EVP and Chief Pharmacy Officer and Retail Co-President Da ...

First quarter 2023 Earnings conference call ...