CVS Q4 Earnings Beat Estimates, Stock Up on Growing Pharmacy Business
Earnings Report
CVS Health (CVS) posted strong earnings for the fourth quarter and full year 2024, surpassing analyst expectations.
Key Metrics
* Fourth quarter revenue: $97.7 billion (beat consensus of $96.8 billion)
* Full year revenue: $372.8 billion
* Adjusted earnings per share: $5.37 (beat consensus of $5.26)
Performance Breakdown
* Retail pharmaceutical business saw strong growth, offsetting declines in the healthcare benefits segment due to ongoing Medicare and Medicaid headwinds.
* Healthcare services segment also contributed to growth.
* Medical loss ratio improved to 92.5% from 95.2% in Q3.
Company Outlook
* CEO David Joyner noted growth in key areas like pharmacy and consumer wellness.
* Adjusted earnings per share guidance for 2025: $5.75 to $6.
Other Highlights
* CVS remains exposed to potential regulatory changes affecting pharmacy benefits managers.
* The company had a tumultuous year with a new CEO and activist investor pressure.
* Shares have declined 40% over the past year.