The volatile consumer healthcare sector showed up big in CVS’ Q1 earnings Wednesday (May 1), with solid revenue from its store operations but a warning about revenue projections due to its foray into the insurance sector. By the numbers, CVS Health reported first-quarter revenues of approximately $88 billion, marking a 4% increase year-over-year. However, the more concerning figure was the adjusted earnings per share (EPS) of $1.31, well below analysts’ projections of about $1.69, according to the Associate ...

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Its profits took a hit as its insurance benefit payouts rose.Shares of CVS Health (CVS -16.93%) dove Wednesday morning after the diversified pharmacy and health insurance company posted disappointing results in its first-quarter earnings report and cut its guidance for the year.As of 12:01 p.m. ET, the stock was down 17.1%. CVS struggles with Medicare costsTotal revenue rose 3.7% year over year to $88.4 billion, but that fell short of the analyst consensus of $89.2 billion. Revenue from CVS's pharmacy and c ...

CVS Health Corporation (CVS) posted adjusted earnings per share (EPS) of $1.31 in first-quarter 2024, down 40.5% year over year. The metric also missed the Zacks Consensus Estimate by 22.5%. 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 88 cents compared with the year-ago GAAP EPS of $1.65, down 46.7%.RevenuesRevenues in the first quarter rose 3.7% year over year to $88.44 billion. ...

Core Viewpoint - CVS Health's stock dropped over 18% following the announcement of weaker-than-expected earnings and revenue for Q1, along with a reduced full-year outlook [1][4]. Financial Performance - For the three months ending March 31, CVS reported revenue of $88.4 billion, a 3.7% increase year-over-year, driven by a 24.6% growth in the Health Care Benefits segment, totaling $32.2 billion [1]. - Earnings per share (EPS) fell 40.5% year-over-year to $1.31, primarily due to declining operating income in the Health Care Benefits business linked to rising medical costs in Medicare Advantage plans [1][4]. Analyst Expectations - The quarterly results significantly missed analysts' expectations, with Wall Street forecasting revenue of $89.2 billion and EPS of $1.69 [3]. - Despite the earnings setback, analysts remain bullish on CVS, with a consensus target price of $87.96, indicating an upside of over 56% from current levels, and a consensus recommendation of "Buy" [6]. Revised Outlook - CVS has lowered its full-year EPS guidance to at least $7.00, down from a previous estimate of at least $8.30, and reduced its cash flow from operations forecast to at least $10.5 billion, down from at least $12 billion [4]. Management's Statement - CVS CEO Karen Lynch expressed confidence in the company's long-term earnings potential and stated that the current challenges do not diminish their opportunities [3][5].

CVS Health Corporation (NYSE:CVS) Q1 2024 Earnings Conference Call May 1, 2024 8:00 AM ET Company Participants Karen Lynch - President, Chief Executive Officer Tom Cowhey - Chief Financial Officer David Falkowski - Executive Vice President, Chief Compliance Officer Brian Kane - Executive Vice President, President, Aetna Mike Pykosz - Executive Vice President, President of Health Care Delivery Larry McGrath - Senior Vice President of Business Development, Investor Relations Conference Call Participants Justi ...

Financial Performance - Q1 2024 - CVS Health's total revenues increased to $88.4 billion, a 3.7% growth compared to $85.3 billion in Q1 2023[6] - Adjusted earnings per share (EPS) were $1.31, down from $2.20 in Q1 2023[3, 6] - Cash flow from operations was $4.9 billion, compared to $7.4 billion in the same period last year[3, 6] Shareholder Value - The company completed a $3.0 billion accelerated share repurchase transaction, retiring approximately 40 million shares[3, 6] - $840 million was returned to shareholders through quarterly dividends[3, 6] Revised 2024 Guidance - Total revenue is expected to be at least $369.0 billion, a decrease from the previous guidance of at least $371.3 billion[3, 7] - Adjusted EPS guidance lowered to at least $7.00, down from at least $8.30, primarily due to elevated Medicare utilization[3, 7] - Adjusted operating income is projected to be at least $14.75 billion, revised down from at least $16.90 billion[3, 7] Segment Performance - Health Care Benefits - Health Care Benefits revenue increased to $32.2 billion from $25.9 billion in Q1 2023[10] - Adjusted operating income decreased to $0.73 billion from $1.82 billion year-over-year[10] - The medical benefits ratio (MBR) increased to 90.4% compared to 84.6% in the prior year[10] Segment Performance - Health Services - Health Services revenue was approximately $40.3 billion, impacted by the loss of a large client, compared to $44.6 billion in Q1 2023[11] - Adjusted operating income decreased to $1.36 billion from $1.68 billion[11] Segment Performance - Pharmacy & Consumer Wellness - Pharmacy & consumer wellness revenue was approximately $28.7 billion, an increase from $27.9 billion in Q1 2023[12] - Adjusted operating income increased to $1.18 billion from $1.13 billion[12] - Prescriptions filled increased to 417.6 million from 404.8 million[12]

Core Viewpoint - CVS Health Corp's shares are experiencing a significant decline, dropping 18% to $55.55, following disappointing first-quarter earnings and revenue that fell short of estimates, alongside a reduced 2024 forecast due to increased medical costs [1] Group 1: Stock Performance - CVS stock is on track for its worst daily percentage drop since 2009, reaching four-year lows [1] - The stock has declined approximately 30% since the beginning of the year, trading below all moving averages from the 20-day to the 320-day trendlines [1] Group 2: Options Activity - Options volume has surged to double the average daily amount, indicating heightened trading activity [1] - There have been 44,000 call options exchanged compared to 27,000 put options, suggesting that many traders are buying on the dip [1] - The June 60 call option is the most popular, with new positions being opened [1]

For the quarter ended March 2024, CVS Health (CVS) reported revenue of $88.44 billion, up 3.7% over the same period last year. EPS came in at $1.31, compared to $2.20 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $89.2 billion, representing a surprise of -0.86%. The company delivered an EPS surprise of -22.49%, with the consensus EPS estimate being $1.69.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

CVS Health (CVS) came out with quarterly earnings of $1.31 per share, missing the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $2.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -22.49%. A quarter ago, it was expected that this drugstore chain and pharmacy benefits manager would post earnings of $2.01 per share when it actually produced earnings of $2.12, delivering a surprise of 5.47%.Over the ...