NYSE$CVS

CVS Health Corp · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported an increase in total revenues but a decrease in operating income and adjusted EPS due to challenges in the Health Care Benefits segment.

CVS Health reported a 2.6% increase in total revenues for the second quarter of 2024, reaching $91.2 billion. However, GAAP diluted EPS decreased to $1.41, and Adjusted EPS decreased to $1.83, primarily due to declines in the Health Care Benefits segment. The company has revised its full-year 2024 guidance to reflect continued pressure in the Health Care Benefits segment, partially offset by strong performance in the Health Services and Pharmacy & Consumer Wellness segments.

  • Total revenues increased by 2.6% to $91.2 billion compared to the prior year.
  • GAAP diluted EPS was $1.41, a decrease from $1.48 in the prior year.
  • Adjusted EPS was $1.83, a decrease from $2.21 in the prior year.
  • Revised full-year 2024 guidance reflects challenges in the Health Care Benefits segment.

Headline financials

Total Revenue

$91.2B

Previous: $88.9B+2.6%
EPS

$1.41

Previous: $2.21-36.2%
Total Medical Membership

27.0M

Previous: 25.6M+5.2%
Medical Benefit Ratio

89.6%

No prior period
Cash Flow From Operations

$7.99B

No prior period
Capital Expenditures

-$1.34B

Previous: -$1.58B+14.7%
Free Cash Flow

$427M

Previous: $326M+31.0%
Net Income

$1.77B

Previous: $1.9B-6.9%
Operating Income

$3.05B

Previous: $3.23B-5.8%
Gross Profit

$41.2B

Previous: $35.4B+16.5%
Cash & Equivalents

$12.5B

Previous: $13.8B-9.4%
Total Assets

$252B

Previous: $250B+1.0%
Stock-Based Comp

$133M

Previous: $204M-34.8%

Revenue & EPS history

CVS Health · Revenue · Quarterly

$91.2B

Q2 2024+2.6%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

CVS Health · $102B total across 3 segments · Q3 2023

  • Health Services
    $46.9B+8.5%
  • Pharmacy & Consumer Wellness
    $28.9B+8.1%
  • Health Care Benefits
    $26.3B+16.8%

Forward guidance

The Company revised its full-year 2024 GAAP diluted EPS guidance to a range of $4.95 to $5.20 from at least $5.64 and revised its full-year 2024 Adjusted EPS guidance to a range of $6.40 to $6.65 from at least $7.00. The Company also revised its full-year 2024 cash flow from operations guidance to approximately $9.0 billion from at least $10.5 billion. The Company’s guidance revision reflects continued pressure in the Health Care Benefits segment, partially offset by strong performance in the Health Services and Pharmacy & Consumer Wellness segments.

Tailwinds

  • Strong performance in Health Services segment
  • Strong performance in Pharmacy & Consumer Wellness segment
  • Focus on innovation to improve patient outcomes
  • Acceleration of transparent pharmacy reimbursement models
  • Increasing the use of biosimilars

Headwinds

  • Continued pressure in the Health Care Benefits segment
  • Revised GAAP diluted EPS guidance to a range of $4.95 to $5.20 from at least $5.64
  • Revised Adjusted EPS guidance to a range of $6.40 to $6.65 from at least $7.00
  • Revised cash flow from operations guidance to approximately $9.0 billion from at least $10.5 billion
  • Decline in Health Care Benefits segment’s operating results due to utilization pressure and unfavorable impact of Medicare Advantage star ratings

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 2024

Historical avgQ2 2024

+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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