CVS Health Corporation (CVS) is scheduled to report fourth-quarter earnings results before the regular trading hours on Wednesday, February 20. The retail pharma company is expected to report an 11% jump in revenue to $53.71 billion, primarily due to higher network claim volumes in the Pharmacy services segment.

Separately, competitive pricing in a drug market that is seeing rapid inflation should also help CVS wade through the highly competitive retail pharma environment. Look out for what the management has to say on client retention rates during the quarter, as well as its expectations for the year.

Meanwhile, the retail segment is likely to see weakness due to industry headwinds, though some of this will be offset by the successful partnership it has formed with various pharmacy benefit managers. Analysts expect revenue from this segment to range around 15%.

Earnings for the quarter are projected to grow about 8% to $2.07 per share. This is much slower than the 15% jump it reported during the last-reported quarter.

CVS stock has tumbled 16% from its 52-week high of achieved in November. In the trailing 52-weeks period, the stock has declined 4%, compared to a 0.5% gain witnessed by the S&P 500 index.

CVS stock has an average 12-month price target of $89.15, suggesting a 30% upside from its last close. Ten out of 14 analysts covering the stock has a Buy rating, while the rest recommend Hold.

Last reported quarter

In Q3, CVS’ net revenues improved 2.4% to $47.3 billion, while GAAP diluted EPS from continuing operations was $1.36. Adjusted earnings were $1.73 a share. Shares jumped 2.59% following the announcement on the better-than-expected results.

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