CVS Health Stock Is Moving Higher: What's Going On?

CVS Health Corp CVS shares are trading higher Wednesday after the company reported better-than-expected financial results and announced plans to acquire Oak Street Health.

What Happened: CVS said fourth-quarter revenue increased 9.5% year-over-year to $83.8 billion, which beat average analyst estimates of $76.21 billion, according to Benzinga Pro. The company said its strong top-line results were driven by growth across all segments.

CVS reported quarterly earnings of $1.99 per share, which beat consensus estimates of $1.92 per share.

"Last year was defined by outperformance across our foundational businesses, robust cash flow from operations and meaningful progress against our value-based care delivery strategy. 2022 was a year of progress, and we continue to build on that momentum with bold moves that will improve the health care experience," said Karen Lynch, president and CEO of CVS.

CVS expects full-year 2023 earnings to be between $8.70 and $8.90 per share versus estimates of $8.86 per share. Cash flow from operations is expected to be between $12.5 billion and $13.5 billion.

What Else: CVS also entered into a definitive agreement in which it will acquire Oak Street Health in an all-cash transaction for $39 per share, representing an enterprise value of approximately $10.6 billion. 

"Combining Oak Street Health's platform with CVS Health's unmatched reach will create the premier value-based primary care solution," Lynch said.

Check This Out: CVS Health Inks Final Deal To Acquire Oak Street Health, Forecasts 2025 EPS Outlook Of $10

The transaction is expected to close sometime in 2023.

CVS Price Action: CVS has a 52-week high of $109.69 and a 52-week low of $84.60.

The stock was up 3.71% at $89.17 at time of publication, according to Benzinga Pro.

Photo: courtesy of CVS.