By Senad Karaahmetovic
CVS Health Corp (NYSE:) reported better-than-expected Q3 results and raised its full-year forecast.
CVS posted a Q3 of $2.09 on revenue of $81.16 billion, beating the consensus of $2.00 on revenue of $76.76 billion. Revenue rose 10% year-over-year, driven by the 11% jump in Pharmacy Services revenue.
“We delivered another outstanding quarter, and have raised full-year guidance as a result. We continue to execute on our strategy with a focus on expanding capabilities in health care delivery, and the announced acquisition of Signify Health will further strengthen our engagement with consumers,” said Karen Lynch, CVS Health President, and CEO.
CVS increased its FY EPS forecast to a range of $8.55-$8.65 from the prior $8.40-8.60, while also topping the consensus of $8.55. The cash flow from operations is now seen at $14 billion (the midpoint), up from the prior $13 billion forecast and again higher than the $13.1 billion consensus.
CVS also announced it reached a $5 billion opioid settlement that will be paid over the next ten years beginning in 2023.
Goldman Sachs analysts commented:
“We would also note that PYD/NII (not in guidance) have typically proven favorable and 2023 could reflect investments the company is making to improve its 2024 Star scores. We also look for management to provide additional details on the potential earnings impact from the 2023 Star scores headwind and CNC PBM contract loss in 2024,”
CVS shares are up 1.5% in pre-market Wednesday.
