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Sep 30, 2022
CVS Health Q3 2022 Earnings Report
CVS Health's financial performance was impacted by opioid litigation charges and a loss on assets held for sale, but adjusted EPS still increased.
Key Takeaways
CVS Health reported a revenue increase of 10.0% to $81.2 billion. However, the company experienced a GAAP loss per share of $(2.60) due to significant charges, including $5.2 billion for opioid litigation and $2.5 billion related to the Omnicare long-term care business. Despite the loss, the adjusted EPS was $2.09.
Total revenues increased to $81.2 billion, up 10.0% compared to prior year.
GAAP loss per share of $(2.60), inclusive of $5.2 billion pre-tax opioid litigation charges and a $2.5 billion pre-tax loss on assets held for sale related to the Omnicare® long-term care business.
Adjusted EPS of $2.09.
The company entered into a definitive agreement to acquire Signify Health, Inc. for $30.50 per share in cash.
Revenue by Segment
Forward Guidance
CVS Health revised its full-year 2022 GAAP diluted EPS guidance range to $3.12 to $3.22 from $7.23 to $7.43 and raised its full-year 2022 Adjusted EPS guidance range to $8.55 to $8.65 from $8.40 to $8.60. The Company also raised its full-year 2022 cash flow from operations guidance range to $13.5 billion to $14.5 billion from $12.5 billion to $13.5 billion.
Positive Outlook
- Raised Adjusted EPS guidance range to $8.55 to $8.65 from $8.40 to $8.60
- Raised cash flow from operations guidance range to $13.5 billion to $14.5 billion from $12.5 billion to $13.5 billion
- The adjustments between full-year 2022 GAAP diluted EPS and Adjusted EPS include amortization of intangible assets
- The adjustments between full-year 2022 GAAP diluted EPS and Adjusted EPS include opioid litigation charges
- The adjustments between full-year 2022 GAAP diluted EPS and Adjusted EPS include losses on assets held for sale
Challenges Ahead
- Revised GAAP diluted EPS guidance range to $3.12 to $3.22 from $7.23 to $7.43
- Forward-looking statements are not guarantees of future performance or results and are subject to risks and uncertainties
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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