From Nasdaq: 2024-05-05 10:05:49

CVS Health (NYSE: CVS) reported Q1 results below estimates, with revenue at $88.4 billion and adjusted earnings of $1.31 per share, missing expectations of $90 billion and $1.74 respectively. The company also lowered its full-year guidance, leading to an 18% decrease in its stock price, though still above market value.

In recent years, CVS stock faced fluctuations, with a 20% decline from $70 in early 2021 to $55, underperforming the S&P in 2023. The Trefis High Quality (HQ) Portfolio, in contrast, outperformed the S&P each year. Despite the stock’s recent challenges, there is potential for growth with a valuation forecast of $72 per share.

CVS Health’s Q1 revenue of $88.4 billion showed a 4% increase, driven by a 25% growth in Health Care Benefits. However, Health Services revenue declined by 10%, leading to an adjusted profit drop to $1.31 per share from $2.20 in the previous year. With a revised earnings outlook of $7.00 to $8.30 per share for 2024, CVS faces challenges but retains growth potential.



Read more at Nasdaq: Should You Pick CVS Health Stock At $55 After Q1 Miss?