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 +1.53% change in stock price 10 days leading up to the earnings, and a -0.67% change 10 days following the report. On the earnings day itself, the stock moves by -0.09%. 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
95.43B
6.31%
4.60%
Gross Margin
13.16%
-13.02%
-10.29%
Operating Margin
2.16%
-49.06%
-37.39%
Net Margin
0.07%
-97.22%
-96.39%
EPS
0.07
-96.00%
-95.04%
No Data Available
CVS Earnings Analysis
CVS HEALTH CORPORATION Corporation (CVS.N) Earnings Conference Call
Positive
Quarterly Revenue Increase: Third quarter revenues were approximately $95.4 billion, an increase of approximately 6% over the prior year quarter, primarily reflecting growth in our health care benefits and pharmacy and consumer wellness segments.
Operating Income and EPS: We delivered adjusted operating income of approximately $2.5 billion and adjusted EPS of $1.09.
Cash Flow and Dividends: Year-to-date cash flow from operations was approximately $7.2 billion, allowing us to return $837 million to shareholders through our quarterly dividend.
Health Care Revenue Growth: In our health care benefits segment, we grew revenues to approximately $33 billion, an increase of over 25% year-over-year, reflecting growth in all lines of business.
Medical Membership Growth: Medical membership grew to approximately 27.1 million, an increase of 178,000 members sequentially, primarily reflecting growth in Medicare and individual exchange.
Negative
Earnings Per Share Decline: Adjusted earnings per share of $1.09, reflecting a decline compared to previous projections.
Revenue Performance Analysis: Total revenues for the company were more than $95 billion, indicating a slower growth rate than expected.
Health Services Operating Loss: The health services segment generated an adjusted operating loss of $924 million, primarily due to premium deficiency reserves.
Cash Flow Decline: Year-to-date cash flow from operations was approximately $7.2 billion, lower than the same period last year, indicating operational challenges.
Increased Medical Costs: The company experienced elevated medical costs in its Medicare business, which negatively impacted overall profitability.
CVS FAQs
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CVS Earning Call Sentiment
CVS Health (CVS) Q3 2024 Earnings Call Transcript
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CVS.N
3.02%Positive
The earnings call summary and Q&A reveal several concerns: CVS Health faces significant restructuring costs, economic pressures, and long-term profitability issues in healthcare benefits. Despite a 6% revenue increase, adjusted EPS is weak, and there's a notable operating loss in healthcare benefits. The Q&A highlighted disenrollment issues and unclear management responses about the Inflation Reduction Act's impact, adding uncertainty. While there are some positives, like revenue growth in certain segments and a potential PDR reversal, the overall sentiment is negative due to financial and strategic challenges.