NYSE$CVS

CVS Health Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced operating results, revealing a revenue increase driven by growth across all segments, alongside strategic acquisitions and a restructuring plan aimed at streamlining operations.

CVS Health reported a 10.3% increase in total revenues to $88.9 billion for Q2 2023, driven by growth across all segments. GAAP diluted EPS was $1.48, and adjusted EPS was $2.21. The company is executing its strategy to expand access to health services and strengthen consumer engagement.

  • Total revenues increased by 10.3% to $88.9 billion compared to the prior year, driven by growth across all segments.
  • GAAP diluted EPS was reported at $1.48, and adjusted EPS was $2.21.
  • Operating income decreased by 30.7%, primarily due to a decrease in adjusted operating income, a restructuring charge, and acquisition-related costs.
  • The company completed the acquisition of Oak Street Health and launched Caremark® Cost SaverTM to lower pharmacy out-of-pocket drug costs.

Headline financials

Total Revenue

$88.9B

Previous: $80.6B+10.3%
EPS (adj)

$2.21

Previous: $2.40-7.9%
Total Medical Membership

25.6M

Previous: 24.4M+5.1%
Pharmacy Claims Processed

576.6M

No prior period
Prescriptions Filled

405.7M

No prior period
Capital Expenditures

-$1.58B

Previous: -$1.46B-8.0%
Free Cash Flow

$326M

Previous: $1.49B-78.2%
Net Income

$1.9B

Previous: $2.95B-35.6%
Operating Income

$3.23B

Previous: $4.57B-29.2%
Gross Profit

$35.4B

Previous: $31.3B+12.9%
Cash & Equivalents

$13.8B

Previous: $12.1B+14.0%
Total Assets

$250B

Previous: $230B+8.6%
Stock-Based Comp

$204M

Previous: $147M+38.8%

Revenue & EPS history

CVS Health · Revenue · Quarterly

$88.9B

Q2 2023+10.3%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

CVS Health · $102B total across 3 segments · Q2 2023

  • Health Services
    $46.2B+7.9%
  • Pharmacy & Consumer Wellness
    $28.8B+9.5%
  • Health Care Benefits
    $26.7B+17.5%

Forward guidance

The Company revised its full-year 2023 GAAP diluted EPS guidance range to $6.53 to $6.75 from $6.90 to $7.12 and confirmed its full-year 2023 Adjusted EPS guidance range of $8.50 to $8.70. The Company also confirmed its full-year 2023 cash flow from operations guidance range of $12.5 billion to $13.5 billion.

Tailwinds

  • Confirmed Adjusted EPS guidance range of $8.50 to $8.70.
  • Confirmed cash flow from operations guidance range of $12.5 billion to $13.5 billion.
  • Focus on expanding access to health services.
  • Focus on strengthening engagement with consumers.
  • Streamline and simplify the organization, improve efficiency and reduce costs.

Headwinds

  • Revised GAAP diluted EPS guidance range to $6.53 to $6.75 from $6.90 to $7.12
  • Operating income decreased 30.7%
  • Adjusted operating income decreased 10.4%
  • Increased outpatient utilization in Medicare Advantage
  • Continued pharmacy reimbursement pressure, decreased COVID-19 vaccinations and diagnostic testing

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+1.3%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+14.9%

Q4 2024

Best reaction

-18.5%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%+14.3%+19.1%
Q4 2025-0.1%+3.6%+0.4%
Q3 2025-1.9%-4.6%-2.2%
Q2 2025-0.3%+1.8%+17.4%
Q1 2025+4.1%-0.7%-4.0%
Q4 2024+14.9%+19.7%+19.4%
Q3 2024+3.1%+0.8%-0.1%
Q2 2024-0.8%-4.3%-1.0%
Q1 2024-18.5%-17.3%-12.0%
Q4 2023+1.8%+4.8%+1.8%
Q3 2023+0.9%+3.0%-0.8%
Q2 2023+0.5%-0.1%-11.2%
Q1 2023-5.5%-4.2%-3.8%
Q4 2022+4.8%+4.5%-10.3%
Q3 2022+3.4%+6.9%+8.4%
Q2 2022+6.8%+7.0%+4.3%
Q1 2022+1.8%+3.0%-1.1%
Q4 2021-5.0%-7.1%-6.6%
Q3 2021+3.7%+2.9%-0.3%
Q2 2021-4.7%-2.8%+4.1%
Q1 2021+6.9%+9.6%+12.1%
Q4 2020-2.0%-5.1%+0.4%
Q3 2020+10.0%+13.2%+21.3%
Q2 2020-1.3%+1.1%-7.3%
Q1 2020+0.4%+4.3%+11.7%
Q4 2019-2.5%-3.4%-19.2%
Q3 2019+6.6%+6.6%+11.9%
Q2 2019+9.2%+8.6%+15.0%
Q1 2019+4.3%+4.1%-3.7%
Q4 2018-10.8%-12.4%-19.8%
Q3 2018+6.9%+8.3%+3.9%
Q2 2018+4.8%+6.2%+18.1%
Q1 2018-8.4%-9.2%-5.8%
Q4 2017-6.7%-5.7%-6.8%
Q3 2017-0.4%+2.5%+3.1%
Q2 2017+0.4%+0.4%+1.6%
Q1 2017-2.8%-1.1%-4.5%
Q4 2016+1.9%+2.1%+4.4%
Q3 2016-8.2%-10.0%-6.3%
Q2 2016+4.2%+4.2%-0.1%
Q1 2016+2.4%
Q4 2015+3.9%
Q3 2015-3.3%
Q2 2015-1.4%
Q1 2015+0.9%
Q4 2014+3.0%
Q3 2014+1.6%
Q2 2014-0.4%
Q1 2014+2.6%
Q4 2013+2.4%
Q3 2013+3.0%
Q2 2013-4.1%
Q1 2013+1.3%
Q4 2012-1.0%
Q3 2012+0.1%
Q2 2012+1.5%
Q1 2012+2.9%
Q4 2011-1.2%
Q3 2011+6.3%
Q2 2011-5.7%
Q1 2011+3.9%
Q4 2010-0.2%
Q4 2007-0.2%
Q3 2010+3.2%
Q2 2010-2.7%
Q1 2009-2.8%
Q1 2010-2.2%
Q4 2009+1.2%
Q3 2008-17.6%
Q3 2009-17.6%
Q4 2008+1.1%
Q2 2008+1.1%
Q2 2009+1.1%

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