4 months ago
Key Takeaways
- CVS Health reports second-quarter net up of nan opening doorbell Wednesday, aft its first-quarter results sent nan company's banal to its worst time of nan year.
- CVS's Q2 gross is expected to emergence and profit is seen falling from past year, arsenic nan drugstore and wellness insurer has cited higher aesculapian costs.
- CVS has lowered its full-year net per stock (EPS) projections successful its past 2 reports.
Pharmacy elephantine CVS Health (CVS) reports second-quarter net up of nan opening doorbell Wednesday, aft its first-quarter results sent nan company's banal sinking astir 17%, its worst time of nan year.
Analysts task second-quarter gross of $91.54 billion, up from $88.92 cardinal a twelvemonth ago, according to estimates compiled by Visible Alpha. Similar to its first-quarter result, analysts expect profit to shrink contempt higher revenue, which CVS has antecedently attributed to elevated costs from wellness insurance claims.
| Analyst Estimates for Q2 2024 | Q1 2024 | Q2 2023 | |
| Revenue | $91.54 billion | $88.44 billion | $88.92 billion |
| Diluted EPS | $1.34 | 88 cents | $1.48 |
| Net Income | $1.69 billion | $1.12 billion | $1.91 billion |
Key Metric: Net Income
CVS lowered its projections for full-year earnings per stock (EPS) successful its last 2 net reports, citing higher-than-expected payouts for security claims arsenic Americans acquisition procedures covered by security astatine a greater complaint than during nan pandemic. The institution said successful each study that it was apt that aesculapian costs could proceed to beryllium an issue.
In its first-quarter report, CVS said it was lowering profit and cash-flow guidance "to bespeak nan presumption that nan mostly of this unit will persist passim 2024."
Business Spotlight: Health Insurance Costs, Medicare Advantage Star Rating
CVS reported a aesculapian use ratio (MBR) that was astir 6% higher year-over-year successful nan first quarter, acknowledgment to nan higher aesculapian costs that nan institution attributed to accrued Medicare usage and "the unfavorable impact" of nan company's Medicare Advantage star ratings.
Medical costs remaining precocious successful CVS Health's second-quarter study could again trim into nan company's profit margins and its banal price.
CVS shares roseate 1.3% to $58.57 by 3 p.m. ET Tuesday but person mislaid much than a 4th of their worth truthful acold this year.
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