CVS Health Cuts FY24 Earnings View Below Market; Stock Down In Pre-market - Update

(RTTNews) - CVS Health Corp. (CVS), while reporting weak earnings in its second quarter, but above market estimates, on Wednesday slashed its fiscal 2024 earnings and adjusted earnings guidance, below the Wall Street estimates.

In pre-market activity on the NYSE, CVS shares were losing around 5.2 percent to trade at $55.30.

The company said it revised its annual guidance to reflect continued pressure in the Health Care Benefits segment, partially offset by strong performance in the Health Services and Pharmacy & Consumer Wellness segments. For fiscal 2024, CVS Health now projects earnings in a range of $4.95 to $5.20 per share and adjusted earnings in a range of $6.40 to $6.65 per share.

Previously, the company expected earnings of at least $5.64 per share and adjusted earnings of at least $7.00 per share.

On average, 26 analysts polled by Thomson Reuters expect the company to report earnings of $6.97 per share for the year. Analysts' estimates typically exclude special items.

In its second quarter, CVS reported earnings decreased from the same period last year but beat the Street estimates.

The company's bottom line totaled $1.770 billion, or $1.41 per share. This compares with $1.901 billion, or $1.48 per share, in last year's second quarter.

Adjusted earnings were $2.306 billion or $1.83 per share for the period, compared to $2.21 per share last year. Analysts had expected the company to earn $1.73 per share.

The company's revenue for the quarter rose 2.6 percent to $91.234 billion from $88.921 billion last year. The Street was looking for revenues of $91.5 billion for the quarter.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.