Why CVS Stock Is Trading Lower Tuesday

CVS Health Corporation CVS shares are trading lower on Tuesday in sympathy with Walgreens Boots Alliance WBA after the company lowered its fiscal year 2023 guidance.

What To Know:

Walgreens has lowered its 2023 adjusted EPS guidance to $4.00 - $4.05 from the previous $4.45 - $4.65 noting consumer and category conditions, a more cautious macroeconomic outlook and lower COVID-19 contributions.

Walgreens reported an increase in sales for the third-quarter, with 8.6% year-over-year growth to reach $35.4 billion. On a constant currency basis, sales were up 8.9%, surpassing the consensus estimate of $34.25 billion.

The company's reported earnings per share (EPS) for Q3 were $0.14, representing a $0.20 decrease compared to the same quarter last year. However, adjusted EPS showed a positive trend, increasing by 3.3% to $1.00. On a constant currency basis, adjusted EPS rose by 3.6%. This growth was impacted by a 19.5% decrease caused by significantly lower volumes of COVID-19 vaccines and testing. The adjusted EPS figure missed the consensus estimate of $1.07.

Related News: Walgreens Boots Stock Plunges After Q3 Earnings - Here's Why

CVS Price Action: According to Benzinga Pro, CVS shares are trading lower by 2.33% at $68.44 at the time of publication.

Image: Courtesy of CVS Health Corporation