Categories AlphaGraphs, Analysis, Health Care

CVS Health Q4 earnings preview: What to expect

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.

Image courtesy: CVS Health

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.

CVS Health third quarter 2018 Earnings Infographic

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text 

Most Popular

CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%

Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss

Key metrics from Nike’s (NKE) Q2 2025 earnings results

NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net

FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips

Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top