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Market News

CVS’ stock gains as company lays out growth strategy

CVS Health’s (NYSE: CVS) shares were up 3.2% in afternoon hours as the company outlined its growth strategy and reaffirmed guidance at its 2019 Investor Day. CVS aims to simplify the consumer health system and drive long-term growth while enhancing shareholder value. CVS will focus on differentiating its businesses by bringing in innovative benefit designs […]

June 4, 2019 2 min read
Market News

CVS Health’s (NYSE: CVS) shares were up 3.2% in afternoon hours as the company outlined its growth strategy and reaffirmed guidance at its 2019 Investor Day. CVS aims to simplify the consumer health system and drive long-term growth while enhancing shareholder value. CVS will focus on differentiating its businesses by bringing in innovative benefit designs […]

· June 4, 2019

CVS Health’s (NYSE: CVS) shares were up 3.2% in afternoon hours as the company outlined its growth strategy and reaffirmed guidance at its 2019 Investor Day. CVS aims to simplify the consumer health system and drive long-term growth while enhancing shareholder value.

CVS will focus on differentiating its businesses by bringing
in innovative benefit designs and reimbursement models, and will work on the
expansion of HealthHUBs. The company plans to open HealthHUBs in a number of
cities including Houston and Atlanta. By the end of 2021, CVS intends to have a
total of 1,500 HealthHUBs in operation.

CVS’ other goals include the introduction of new products
and services as well as the creation of a strong technology infrastructure. The
company expects to generate approx. $300-350 million of synergies from the
Aetna integration in 2019 and approx. $800 million in 2020.

CVS reaffirmed its guidance for full-year 2019. The company expects consolidated revenues to come in the range of $251.2 billion to $254.4 billion. On a GAAP basis, operating income is expected to be $11.8 billion to $12 billion and on an adjusted basis, operating income is expected to be $15 billion to $15.2 billion.

GAAP diluted EPS is projected to be $4.90 to $5.05 while adjusted EPS is estimated to be $6.75 to $6.90. CVS expects to achieve adjusted EPS of at least $7.00 in 2020, mid-single digit percent adjusted EPS growth in 2021, and low double digit percent growth in 2022 and beyond.

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