CVS Health on Wednesday reported first-quarter outcomes that beat earnings and revenue expectations, but the corporate lowered its full-year profit steerage because of prices associated to current acquisitions.
The firm’s shares fell greater than 2% on Wednesday.
Here’s what CVS reported in contrast with Wall Street’s expectations, primarily based on a survey of analysts by Refinitiv:
- Earnings per share: $2.20 adjusted, vs. $2.09 anticipated
- Revenue: $85.28 billion, vs. $80.81 billion anticipated
For the quarter ended March 31, CVS posted profit 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 gadgets, the corporate reported earnings of $2.20 per share for the interval.
CVS reported whole revenue of $85.28 billion, an 11% enhance over the $76.83 billion a 12 months earlier.
CVS lowered its 2023 adjusted earnings steerage to a spread 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 firm decreased its steerage because of prices related to its $8 billion acquisition of Signify Health and its $10.6 billion buy of Oak Street Health, amongst different gadgets.
CVS’ well being companies phase booked revenue of $44.59 billion, a 12.6% enhance over gross sales of $39.62 billion in the identical quarter final 12 months. The division consists of its pharmacy profit supervisor CVS Caremark and health-care companies delivered in medical clinics, by way of telehealth and at dwelling.
Pharmacy claims processed on this division elevated 3.7% in contrast with first quarter 2022 due partly to an elevated cough, chilly and flu season.
CVS’ medical insurance phase generated revenue of $25.88 billion, a 12% enhance from the 12 months earlier than. The division consists of Aetna plans for the Affordable Care Act, Medicare Advantage, Medicaid, and dental and imaginative and prescient. Total 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 usually signifies that the corporate collected extra in premiums than it paid out in advantages, leading to increased profitability.
And CVS’ retail phase booked revenue of $27.92 billion, and enhance of seven.8% in contrast with gross sales of $25.89 billion within the first quarter of 2022. The division consists of prescriptions allotted in its 9,900 brick-and-mortar drugstores, infusion companies, testing and vaccine administration.
Prescriptions stuffed elevated 2.5% in contrast with the identical interval final 12 months, once more due partly to the elevated cough, flu and chilly season. The enhance was offset partly by a decline in Covid vaccinations. Excluding this, prescriptions stuffed elevated 4.5%.