CVS Earnings Prediction
The chart below shows how CVS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CVS sees a -0.02% change in stock price 10 days leading up to the earnings, and a +0.08% change 10 days following the report. On the earnings day itself, the stock moves by +0.93%. This data can give you a slight idea of what to expect for the next quarter's release.
CVS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
97.71B
4.15%
2.39%
Gross Margin
13.20%
-10.75%
0.30%
Operating Margin
2.49%
-34.47%
15.28%
Net Margin
1.66%
-23.85%
2271.43%
EPS
1.30
-17.72%
1757.14%
No Data Available
CVS Earnings Analysis
CVS Health Corp Corporation (CVS.N) Earnings Conference Call
Positive
Q4 EPS Exceeds Expectations: CVS Health reported Q4 adjusted EPS of $1.19, exceeding expectations of $0.914, reflecting strong financial performance.
Quarterly Revenue Increase: Fourth quarter revenues reached nearly $98 billion, marking a 4% increase year-over-year, driven by growth in healthcare benefits and pharmacy segments.
Healthcare Benefits Revenue Surge: The healthcare benefits segment generated revenues of approximately $33 billion, a 23% increase over the prior year quarter, indicating robust growth across all lines of business.
Strong Operational Cash Flow: Cash flow from operations for the full year was approximately $9.1 billion, benefiting from early cash receipts, showcasing strong operational efficiency.
Shareholder Value Commitment: CVS Health returned $838 million to shareholders through dividends in Q4, totaling over $3.3 billion for the year, demonstrating a commitment to shareholder value.
Negative
Healthcare Benefits Operating Loss: Adjusted operating loss in the healthcare benefits segment reached $439 million, primarily due to a higher medical benefit ratio, reflecting increased utilization and lower star ratings.
Medical Benefit Ratio Increase: Medical benefit ratio increased to 94.8%, up 630 basis points year-over-year, driven by higher acuity in Medicaid and elevated medical cost trends.
Healthcare Revenue Decline: Healthcare services segment revenues decreased by approximately 4% year-over-year, primarily due to the loss of a large client and continued pharmacy client price improvements.
Pharmacy Segment Income Decline: Adjusted operating income in the pharmacy and consumer wellness segment declined approximately 13% from the prior year quarter, attributed to pharmacy reimbursement pressure and lower front store volumes.
Healthcare Membership Decline: Projected decline of over 1 million members in the healthcare benefits segment, with significant reductions expected in individual exchange and Medicare products.
CVS FAQs
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CVS Earning Call Sentiment
CVS Health Corporation (NYSE:CVS) Q4 2024 Earnings Call Transcript
CVS.N
0.31%Positive
The earnings call highlights several challenges, including operational issues in Aetna, economic pressures, and increased competition. Despite positive financial performance, the lack of guidance for 2024, potential operating losses, and membership disenrollment in Medicare Advantage are concerning. The Q&A reveals uncertainties in Medicare Advantage trends and management's unclear responses. The absence of share repurchase plans and a high leverage ratio further add to the negative sentiment. These factors, combined with the lack of market cap data, suggest a negative stock price movement over the next two weeks.
