CVS earnings Q1 2023

CVS Health On Wednesday, it reported first-quarter results that beat earnings and revenue expectations, but the company lowered its full-year earnings guidance due to costs related to its recent acquisitions.

Shares fell more than 1% in pre-market trading on Wednesday.

Here’s what CVS had to say compared to Wall Street’s expectations, based on a survey of analysts conducted by Refinitiv:

• Earnings per share: $2.20 adjusted, vs. $2.09 expected
• he won: 85.28 billion dollars, compared to the expected 80.81 billion dollars

For the quarter ended March 31, CVS reported earnings of $2.14 billion, or $1.65 per share, compared to $2.35 billion, or $1.77 per share, in the prior year. Excluding one-time items, the company reported earnings of $2.20 per share for the period.

CVS reported total revenue of $85.28 billion, up 11% from the $76.83 billion in the first quarter of 2022.

CVS lowered its 2023 adjusted earnings guidance to a range of $8.50 to $8.70, which is 20 cents lower than its previous forecast of $8.70 to $8.90.

The company reduced guidance due to costs associated with its $8 billion acquisition A sign of health and its $10.6 billion purchase of Oak Street Health, among other things.

CVS’s Health Services segment generated revenue of $44.59 billion, an increase of 12.6% from sales of $39.62 billion in the year-ago quarter. The division includes the CVS Caremark Pharmacy Benefit Manager and health care services provided in the clinic, through telehealth and at home.

Processed pharmacy claims in this division increased 3.7% compared to the first quarter of 2022 in part due to higher cough, cold and flu season.

CVS’ health insurance segment generated revenue of $25.88 billion, an increase of 12% from sales of $23.09 billion in the same quarter last year.

The section includes the Aetna Affordable Care Act, Medicare Advantage, Medicaid and dental and vision plans. Total membership in these plans increased by 1.1 million to 25.5 million.

The medical benefit rate for insurance plans rose 1.2%, to 84.6%. This ratio is a measure of total medical expenses paid relative to premiums collected. A low ratio usually indicates that the company collected more in premiums than it paid in interest, resulting in higher profitability.

CVS’s retail segment generated revenue of $27.92 billion, an increase of 7.8% compared to sales of $25.89 billion in the first quarter of 2022. The division includes prescriptions filled at the 9,900 traditional drug stores, injection services, testing and administering the vaccine.

Filled prescriptions were up 2.5% year-over-year, due in part to higher coughs, flu and cold season. This increase was offset by a decrease in vaccination against Covid. Excluding that, packaged prescriptions increased 4.5%.

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