From CNBC: 2024-05-01 16:19:16

CVS Health reported first-quarter revenue and adjusted earnings below expectations, lowering its full-year profit outlook due to higher medical costs. Shares plummeted over 16% on Wednesday. The company expects adjusted earnings in 2024 to be at least $7 per share, down from a previous guidance of at least $8.30 per share, attributing the drop to challenging circumstances in its Medicare Advantage business. CVS is focusing on improving margins and navigating industry difficulties, including federal government reimbursement rates and the Inflation Reduction Act. The first-quarter results include adjusted earnings per share of $1.31 compared to the expected $1.69, and revenue of $88.44 billion versus the expected $89.21 billion. CVS’s health insurance segment grew revenue by over 24% but reported lower than expected operating income and an increased medical benefit ratio due to heightened utilization of Medicare Advantage and negative Medicare Advantage star ratings. The company reported a reduction in sales for its health services segment but an increase in sales for its pharmacy and consumer wellness division. CVS faces obstacles from the loss of large clients and pharmacy reimbursement pressure, among other challenges.



Read more at CNBC: CVS Health (CVS) earnings Q1 2024