CVS Health(US:CVS) ZACKSยท2024-10-30 15:07Core Viewpoint - CVS Health is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The earnings report is scheduled for November 6, 2024, and could lead to a stock price increase if the results exceed expectations, while a miss could result in a decline [2]. - The consensus estimate for CVS Health's quarterly earnings is $1.57 per share, reflecting a 29% decrease year-over-year, with expected revenues of $92.87 billion, marking a 3.5% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 5.13% higher, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for CVS Health is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -12.28%, suggesting a bearish outlook from analysts [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with positive readings being more reliable [5][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - CVS Health has beaten consensus EPS estimates three out of the last four quarters, with a recent surprise of +5.17% when it reported earnings of $1.83 per share against an expectation of $1.74 [11][12]. Conclusion - CVS Health does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [15].