Earning Date, Transcript Summary & Report

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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 +0.42% change in stock price 10 days leading up to the earnings, and a -1.46% change 10 days following the report. On the earnings day itself, the stock moves by +0.71%. 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
94.59B
6.96%
-3.20%
Gross Margin
15.22%
7.18%
15.30%
Operating Margin
4.29%
56.00%
72.29%
Net Margin
1.88%
48.03%
13.25%
EPS
1.41
60.23%
8.46%
No Data Available

CVS Earnings Analysis

CVS Health Corp Corporation (CVS.N) Earnings Conference Call

Positive

  • First Quarter Earnings Report: We delivered first quarter adjusted earnings per share of $2.25 and adjusted operating income of $4.6 billion.

  • Adjusted EPS Guidance Increase: Increased full year 2025 adjusted EPS guidance to a range of $6 to $6.20, up from $5.75 to $6.

  • Healthcare Revenue Increase: Healthcare benefits generated nearly $35 billion of revenue in the quarter, an increase of 8% over the prior year driven by increases in our Medicare business.

  • Healthcare Benefits Income Surge: Adjusted operating income of the healthcare benefits segment increased by over $1.2 billion from the prior year quarter to approximately $2 billion.

  • Quarterly Revenue Increase: First quarter revenues of nearly $95 billion increased 7% over the prior year quarter, driven by revenue growth across all segments.

  • Health Services Revenue Increase: Our health services segment generated revenues of over $43 billion during the quarter, an increase of nearly 8% year-over-year.

  • Healthcare Revenue Growth: Total revenues grew 27% compared to the same quarter last year in our healthcare delivery business, driven by strong patient growth at Oak Street.

  • Pharmacy Sales Growth: Same store pharmacy sales in the quarter grew nearly 18% versus the prior year, and same store prescription volumes increased nearly 7%.

  • Cash Flow Increase: Generated cash flows from operations of approximately $4.6 billion during the quarter, allowing us to increase our full year cash flow guidance.

  • Shareholder Dividend Distribution: Returned $840 million to our shareholders through our quarterly dividend.

Negative

  • Business Exit Strategy: The company plans to exit the individual exchange business in 2026 due to continued underperformance, projecting variable losses between $350 million and $400 million for 2025.

  • Premium Deficiency Reserve Impact: A premium deficiency reserve of approximately $450 million was established for the 2025 coverage year, reflecting updated seasonality projections and higher membership than previously anticipated, which increased the medical benefit ratio by about 130 basis points.

  • Elevated Medical Cost Trends: Medical cost trends remain elevated, particularly in the individual exchange business, which experienced higher than expected trends, leading to the establishment of the premium deficiency reserve.

  • Pharmacy Access Concerns: The Arkansas government's actions are expected to leave hundreds of thousands of patients without access to community pharmacies, increasing costs and limiting access to critical drugs, which CVS Health views as a significant concern.

  • Reimbursement Pressure Impact: The company is facing reimbursement pressure in its pharmacy business, which could impact profitability and operational performance moving forward.

Key Financial Performance iconKey Financial Performance
Operating Highlights iconOperating Highlights
Risks or Challenges iconRisks or Challenges
Strategic Initiatives & Outlook iconStrategic Initiatives & Outlook
Shareholder Return Plan iconShareholder Return Plan

CVS FAQs

How does CVS typically perform around its earnings report dates?

CVS's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.42% change leading up to the report and a -1.46% change in the 10 days following the release.

Is CVS Health Corp (CVS) Q1 2025 Earnings Call Summary positive or negative?

How can historical earnings data help predict future stock performance?

CVS Earnings Deck

CVS Health (CVS) Q1 2025 Earnings Call Transcript

CVS Earning Call Sentiment

CVS Health (CVS) Q1 2025 Earnings Call Transcript

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CVS.N

-6.65%
Positive
CVS Health's strong financial performance across all segments, including a 7% revenue increase and improved medical benefit ratio, indicates robust operational health. The successful biosimilar market initiative and strategic priorities in digital strategy and cost efficiency further bolster the positive outlook. Despite some concerns about Medicare trends and unclear management responses in the Q&A, the overall sentiment remains positive, with promising projections for 2025 and a substantial dividend return. The lack of a share buyback program is a minor drawback, but the company's financial health and strategic initiatives outweigh these concerns.