CVS Well being on Wednesday reported first-quarter outcomes that beat earnings and income expectations, however the firm lowered its full-year revenue steering attributable to prices associated to latest acquisitions.
Shares fell greater than 1% in premarket buying and selling Wednesday.
This is what CVS reported in contrast with Wall Avenue’s expectations, primarily based on a survey of analysts by Refinitiv:
- Earnings per share: $2.20 adjusted, vs. $2.09 anticipated
- Income: $85.28 billion, vs. $80.81 billion anticipated
For the quarter ended March 31, CVS posted revenue of $2.14 billion, or $1.65 a share, in contrast with $2.35 billion, or $1.77 a share, a 12 months earlier. Excluding one-time objects, the corporate reported earnings of $2.20 per share for the interval.
CVS reported whole income of $85.28 billion, an 11% improve over the $76.83 billion a 12 months earlier.
CVS lowered its 2023 adjusted earnings steering to a variety of $8.50 to $8.70 per share, which is 20 cents decrease than its earlier projection of $8.70 to $8.90 per share.
The corporate lowered its steering attributable to prices related to its $8 billion acquisition of Signify Well being and its $10.6 billion buy of Oak Avenue Well being, amongst different objects.
CVS’ well being companies phase booked income of $44.59 billion, a 12.6% improve over gross sales of $39.62 billion in the identical quarter final 12 months. The division contains its pharmacy profit supervisor CVS Caremark and health-care companies delivered in medical clinics, by telehealth and at residence.
Pharmacy claims processed on this division elevated 3.7% in comparison with first quarter 2022 due partly to an elevated cough, chilly and flu season.
CVS’ medical health insurance phase generated income of $25.88 billion, a 12% improve from the 12 months earlier than. The division contains Aetna Inexpensive Care Act, Medicare Benefit, Medicaid and dental and imaginative and prescient plans. Complete membership in CVS medical plans elevated by 1.1 million to 25.5 million.
The insurance coverage’ medical profit ratio elevated to 84.6% from 83.4% a 12 months earlier. This ratio is a measure of whole medical bills paid relative to premiums collected. A decrease ratio sometimes signifies that the corporate collected extra in premiums than it paid out in advantages, leading to increased profitability.
And CVS’ retail phase booked revenues of $27.92 billion, and improve of seven.8% in comparison with gross sales of $25.89 billion within the first quarter of 2022. The division contains prescriptions distributed in its 9,900 brick-and-mortar drug shops, infusion companies, testing and vaccine administration.
Prescriptions stuffed elevated 2.5% in comparison with the identical interval final 12 months, once more due partly to the elevated cough, flu and chilly season. The rise was offset partly by a decline in Covid vaccinations. Excluding this, prescriptions stuffed elevated 4.5%.
