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Jun 30, 2023
CVS Health Q2 2023 Earnings Report
Announced operating results, revealing a revenue increase driven by growth across all segments, alongside strategic acquisitions and a restructuring plan aimed at streamlining operations.
Key Takeaways
CVS Health reported a 10.3% increase in total revenues to $88.9 billion for Q2 2023, driven by growth across all segments. GAAP diluted EPS was $1.48, and adjusted EPS was $2.21. The company is executing its strategy to expand access to health services and strengthen consumer engagement.
Total revenues increased by 10.3% to $88.9 billion compared to the prior year, driven by growth across all segments.
GAAP diluted EPS was reported at $1.48, and adjusted EPS was $2.21.
Operating income decreased by 30.7%, primarily due to a decrease in adjusted operating income, a restructuring charge, and acquisition-related costs.
The company completed the acquisition of Oak Street Health and launched Caremark® Cost SaverTM to lower pharmacy out-of-pocket drug costs.
CVS Health
CVS Health
CVS Health Revenue by Segment
Revenue by Segment
Health Care Benefits Revenue
CapyFin.comHealth Services Revenue
CapyFin.comPharmacy & Consumer Wellness Revenue
CapyFin.com Forward Guidance
The Company revised its full-year 2023 GAAP diluted EPS guidance range to $6.53 to $6.75 from $6.90 to $7.12 and confirmed its full-year 2023 Adjusted EPS guidance range of $8.50 to $8.70. The Company also confirmed its full-year 2023 cash flow from operations guidance range of $12.5 billion to $13.5 billion.
Positive Outlook
- Confirmed Adjusted EPS guidance range of $8.50 to $8.70.
- Confirmed cash flow from operations guidance range of $12.5 billion to $13.5 billion.
- Focus on expanding access to health services.
- Focus on strengthening engagement with consumers.
- Streamline and simplify the organization, improve efficiency and reduce costs.
Challenges Ahead
- Revised GAAP diluted EPS guidance range to $6.53 to $6.75 from $6.90 to $7.12
- Operating income decreased 30.7%
- Adjusted operating income decreased 10.4%
- Increased outpatient utilization in Medicare Advantage
- Continued pharmacy reimbursement pressure, decreased COVID-19 vaccinations and diagnostic testing
Revenue & Expenses
Visualization of income flow from segment revenue to net income