Dec 31, 2019

CVS Health Q4 2019 Earnings Report

CVS Health reported strong Q4 2019 results, reflecting strong execution across the enterprise.

Key Takeaways

CVS Health's Q4 2019 revenues increased by 22.9% to $66.9 billion, GAAP operating income increased to $3.0 billion, and adjusted operating income increased by 1.3% to $3.8 billion. GAAP diluted earnings per share from continuing operations were $1.33, and adjusted EPS was $1.73. The company's performance reflects strong financial and operational execution and a successful first year of integrating the Aetna business.

Total revenues increased 22.9% to $66.9 billion.

GAAP operating income increased to $3.0 billion.

Adjusted operating income increased 1.3% to $3.8 billion.

GAAP diluted earnings per share from continuing operations of $1.33, with Adjusted EPS of $1.73.

Total Revenue
$66.9B
Previous year: $54.4B
+22.9%
EPS
$1.73
Previous year: $2.14
-19.2%
Medical membership
22.9M
Gross Profit
$11.7B
Previous year: $10.2B
+15.2%
Cash and Equivalents
$5.68B
Previous year: $4.06B
+40.0%
Free Cash Flow
$2.07B
Previous year: $1.89B
+9.1%
Total Assets
$222B
Previous year: $196B
+13.2%

CVS Health

CVS Health

CVS Health Revenue by Segment

Forward Guidance

The Company’s full year 2020 consolidated GAAP operating income is projected to be in the range of $12.8 billion to $13.0 billion and full year 2020 adjusted operating income is projected to be in the range of $15.5 billion to $15.8 billion. Full year 2020 GAAP diluted EPS from continuing operations is projected to be in the range of $5.47 to $5.60, and full year 2020 Adjusted EPS is projected to be in the range of $7.04 to $7.17.

Positive Outlook

  • GAAP operating income in the range of $12.8 billion to $13.0 billion
  • Adjusted operating income in the range of $15.5 billion to $15.8 billion
  • GAAP diluted EPS from continuing operations in the range of $5.47 to $5.60
  • Adjusted EPS in the range of $7.04 to $7.17
  • Cash flow from operations in the range of $10.5 billion to $11.0 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income