CVS beats on earnings and revenue but lowers profit outlook

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A CVS location in New York, US, on Thursday, Feb. 9, 2023.
Stephanie Keith | Bloomberg | Getty Images

CVS Health on Thursday reported first-quarter results that beat earnings and revenue expectations, but the company lowered its full-year profit guidance due to costs related to recent acquisitions.

Shares fell more than 1% in premarket trading Wednesday.

Here’s what CVS reported compared with Wall Street’s expectations, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.20 adjusted, vs. $2.09 expected
  • Revenue: $85.28 billion, vs. $80.81 billion expected

For the quarter ended March 31, CVS posted profit of $2.14 billion, or $1.65 a share, compared with $2.35 billion, or $1.77 a share, a year earlier. Excluding one-time items, the company reported earnings of $2.20 per share for the period.

CVS reported total revenues of $85.28 billion, an 11% increase over the $76.83 billion reported in the first quarter of 2022.

CVS lowered its 2023 adjusted earnings guidance to a range of $8.50 to $8.70, which is 20 cents lower than its previous projection of $8.70 to $8.90.

The company lowered its guidance due to costs associated with its $8 billion acquisition of Signify Health and its $10.6 billion purchase of Oak Street Health, among other items.

This is a developing story. Please check back for updates.

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