- CVS’s preliminary adjusted earnings per share (EPS) for the third quarter missed estimates, with figures between $1.05 and $1.10, against an expected $1.70.
- David Joyner has been named as the new Chief Executive and President of CVS Health.
- Roger Farah has been appointed as the Chairman of the Board at CVS Health.
- CVS’s third-quarter results are not expected to meet Wall Street’s expectations.
- CVS has reported a restructuring charge amounting to $1.2 billion in their GAAP results.
- The company’s medical benefit ratio for the third quarter is expected to be approximately 95.2%.
- There have been higher than anticipated medical cost trends impacting CVS’s financial performance.
- Investors are advised not to rely on prior financial guidance due to revised expectations.
- CVS cited high medical cost pressures affecting their health care benefits.
- Charges have been incurred related to incremental store closures and cost-cutting measures.
- Preliminary third-quarter adjusted net income is projected to be between $1.32 billion and $1.39 billion.
- Analyst ratings for CVS include 15 buy recommendations, 13 holds, and no sells.
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Cvs Health Corp on Smartkarma
Analyst coverage of CVS Health Corp on Smartkarma reveals insights from Baptista Research. In their report titled “CVS Health Corporation: Strategic Leverage in Pharmacy Benefit Management (PBM) and Insurance Operations! – Major Drivers,” the analysts highlight mixed financial results for the company in the second quarter of 2024. CVS Health reported adjusted earnings per share of $1.83, revenues exceeding $91 billion, and a strong performance in the Health Services and Pharmacy & Consumer Wellness segments.
Another report from Baptista Research, titled “CVS Health Corporation: Will The Increasing Margin in Medicare Advantage Last? – Major Drivers,” discusses the Q1 2024 earnings of CVS Health. The analysts note both positive and negative impacts on the company’s business structure, with lower-than-expected earnings per share of $1.31 due to utilization pressures in the Medicare Advantage. As a result, CVS has revised its full-year guidance for adjusted EPS to at least $7. Despite challenges, the analysts provide valuable insights into the company’s performance and future prospects.
A look at Cvs Health Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
CVS Health Corp, an integrated pharmacy healthcare provider, has received favorable Smart Scores indicating a positive long-term outlook. With strong scores in value and dividend factors, the company is positioned well for potential growth and income generation for investors. A solid momentum score further highlights positive market sentiment, pointing towards potential upward movement in the company’s stock price.
Although CVS Health Corp scores lower in growth and resilience factors, indicating some areas for improvement, its overall outlook remains promising. The company’s diverse offerings in pharmacy benefit management, retail pharmacy, and healthcare services provide a solid foundation for future growth and sustainability in the competitive healthcare industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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