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Jun 30, 2024
CVS Health Q2 2024 Earnings Report
Reported an increase in total revenues but a decrease in operating income and adjusted EPS due to challenges in the Health Care Benefits segment.
Key Takeaways
CVS Health reported a 2.6% increase in total revenues for the second quarter of 2024, reaching $91.2 billion. However, GAAP diluted EPS decreased to $1.41, and Adjusted EPS decreased to $1.83, primarily due to declines in the Health Care Benefits segment. The company has revised its full-year 2024 guidance to reflect continued pressure in the Health Care Benefits segment, partially offset by strong performance in the Health Services and Pharmacy & Consumer Wellness segments.
Total revenues increased by 2.6% to $91.2 billion compared to the prior year.
GAAP diluted EPS was $1.41, a decrease from $1.48 in the prior year.
Adjusted EPS was $1.83, a decrease from $2.21 in the prior year.
Revised full-year 2024 guidance reflects challenges in the Health Care Benefits segment.
CVS Health
CVS Health
CVS Health Revenue by Segment
CVS Health Revenue by Geographic Location
Revenue by Segment
Health Care Benefits Revenue
CapyFin.comHealth Services Revenue
CapyFin.comPharmacy & Consumer Wellness Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The Company revised its full-year 2024 GAAP diluted EPS guidance to a range of $4.95 to $5.20 from at least $5.64 and revised its full-year 2024 Adjusted EPS guidance to a range of $6.40 to $6.65 from at least $7.00. The Company also revised its full-year 2024 cash flow from operations guidance to approximately $9.0 billion from at least $10.5 billion. The Company’s guidance revision reflects continued pressure in the Health Care Benefits segment, partially offset by strong performance in the Health Services and Pharmacy & Consumer Wellness segments.
Positive Outlook
- Strong performance in Health Services segment
- Strong performance in Pharmacy & Consumer Wellness segment
- Focus on innovation to improve patient outcomes
- Acceleration of transparent pharmacy reimbursement models
- Increasing the use of biosimilars
Challenges Ahead
- Continued pressure in the Health Care Benefits segment
- Revised GAAP diluted EPS guidance to a range of $4.95 to $5.20 from at least $5.64
- Revised Adjusted EPS guidance to a range of $6.40 to $6.65 from at least $7.00
- Revised cash flow from operations guidance to approximately $9.0 billion from at least $10.5 billion
- Decline in Health Care Benefits segment’s operating results due to utilization pressure and unfavorable impact of Medicare Advantage star ratings
Revenue & Expenses
Visualization of income flow from segment revenue to net income