CVS Health shares rose 2.7% after quarterly results beat Wall Street's estimates and the company raised its outlook for the year.
Shares were trading around $63.97. The stock is up about 42% on the year.
The healthcare giant reported net income of $1.02 billion on revenue of $98.92 billion compared to $1.77 billion in net income on $91.23 billion in revenue a year earlier. Stripping out certain one-time items, earnings came in at $1.81 a share.
Analysts polled by FactSet expected $94.53 billion in revenue and $1.46 a share in adjusted earnings.
CVS raised its adjusted earnings per-share forecast for 2025 to a range between $6.30 to $6.40, up from a prior estimate between $6 a share and $6.20 a share.
The Woonsocket, R.I., company's topline results were boosted by double-digit percentage increases across its health care benefits, health services, and pharmacy and consumer wellness segments. The results stand in contrast to financial pressure seen at other health insurers like Centene and UnitedHealth Group as they struggle this year amid a surprise financial squeeze from higher-than-expected medical costs.
While CVS's Aetna business is improving, Chief Executive David Joyner notes it continues to face pressure in its health-care delivery business stemming from higher medical benefit ratios at Oak Street Health, which it acquired in 2023.
"Earnings were solid across all three segments, but solid growth both in the retail and [health care benefits] segments were key highlights," Mizuho analysts said in a research note. "Although expectations were for a beat, this quarterly beat was higher than expected."
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