- CVS Health’s adjusted EPS for Q4 came in at $1.19, surpassing the estimate of $0.92.
- Comparable sales growth was 10.2%, beating the expected 7.71% increase.
- Total net revenue for the quarter reached $97.71 billion, higher than the forecasted $97.21 billion.
- Healthcare Benefits revenue was $32.96 billion, exceeding the estimate of $32.61 billion.
- The Health services segment recorded revenue of $47.02 billion, above the expected $44.56 billion.
- Pharmacy network revenues were $25.20 billion, outperforming the projected $24.34 billion.
- Mail and specialty revenue stood at $18.75 billion, surpassing the estimate of $17.27 billion.
- 499.4 million total pharmacy claims were processed, slightly above the estimate of 497.73 million.
- Pharmacy and consumer wellness revenue was $33.51 billion, surpassing the estimated $31.21 billion.
- Corporate and Other revenue reported was $83 million, falling short of the $125.3 million estimate.
- For the year 2025, adjusted EPS is projected between $5.75 to $6.00, with estimates at the upper range of $6.00.
- CVS has set its full-year 2025 GAAP diluted EPS guidance between $4.58 and $4.83.
- The company notes growth in Pharmacy and Consumer Wellness while addressing challenges in the Health Care Benefits sector.
- Analyst recommendations include 18 buys and 11 holds, with no sells.
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Cvs Health Corp on Smartkarma
Analysts on Smartkarma provide a diverse outlook on CVS Health Corp. Value Investors Club‘s report, CVS Health Corp (CVS) – Thursday, Oct 3, 2024, leans bearish, suggesting a potential 30%+ downside for CVS. The author recommends pair trades like going long on CI and short on CVS, highlighting declining performance in Pharmacy & Consumer Wellness operations. Drawing parallels to “using bad grapes to make wine,” the author views this segment as terminal, also noting activist investor Glenview Capital’s 1% stake in CVS.
On the contrary, Baptista Research offers a bullish perspective in their analysis of CVS Health Corporation. In the report focusing on the expansion and optimization of health services as growth drivers, the company’s third-quarter 2024 earnings reveal a revenue increase to approximately $95.4 billion, marking a 6% growth. Despite challenges within the Health Care Benefits segment affecting the adjusted earnings per share ($1.09), Baptista Research emphasizes strategic leverage in Pharmacy Benefit Management and Insurance Operations as key drivers of CVS Health’s performance.
A look at Cvs Health Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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 Corporation, an integrated pharmacy health care provider known for its widespread network of drugstores across the U.S., is showing a robust outlook based on its Smartkarma Smart Scores. With top ratings of 5 in both Value and Dividend factors, CVS Health Corp is demonstrating strong financial stability and investor-friendly returns. Additionally, the company’s Growth, Momentum, and Resilience scores indicate a slightly more moderate performance outlook, suggesting steady progress and market presence.
As a leader in pharmacy benefit management services and retail pharmacy operations, CVS Health Corp’s overall Smart Score highlights its solid position in the market. The emphasis on value and dividend attractiveness reflects positively on the company’s long-term prospects, despite facing varied scores in growth, momentum, and resilience. Overall, CVS Health Corp appears well-positioned to leverage its established presence in the healthcare sector for continued success in the future.
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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