CVS Health Beats Profit Expectations, Despite Rising Costs
CVS Health (CVS) reported fourth-quarter earnings that surpassed analyst estimates, indicating its ability to navigate increasing costs in its insurance segment.
Financial Highlights:
* Net income: $1.64 billion, or $1.30 per share (non-GAAP)
* Excluding one-time items: Earnings per share (EPS) of $1.19, exceeding analyst consensus of $0.89
Key Metrics:
* Quarterly revenue: $97.71 billion, surpassing estimates of $97.06 billion
* Same-store sales growth: 4.4%
* Pharmacy Services segment revenue: $52.1 billion
* Retail Pharmacy segment revenue: $45.6 billion
Challenges and Opportunities:
* CVS faced higher medical costs in its insurance division and lower Medicare Advantage star ratings.
* The company is implementing a multi-year plan involving the closure of over 1,100 stores.
* Management changes and the addition of new board members aim to address challenges and enhance performance.
Outlook:
* CVS Health forecasts full-year adjusted earnings of $5.75 to $6.00 per share.
* Analysts expect EPS of $5.86.
* The company aims to navigate headwinds and drive growth in 2023.