CVS Health Q4 Earnings: Revenue And EPS Beat, Same-store Prescription Volume Up 5.9%, Upbeat FY25 Outlook And More

On Wednesday, CVS Health Corp CVS reported fourth-quarter sales of $97.71 billion, beating the consensus of $97.19 billion.

Total revenues increased 4.2%, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments, partially offset by a decline in the Health Services segment.

Also Read: CVS Health Stock Is Relatively Cheap, Analyst Highlights Cost Trend Pressure Ahead Of Q4 Earnings

Adjusted EPS of $1.19 decreased from $2.12 in the prior year, beating the consensus of $0.93, primarily due to a decline in the Health Care Benefits segment's operating results, which reflect continued utilization pressure and the unfavorable impact of the Company's Medicare Advantage star ratings for the 2024 payment year.

Adjusted operating income decreased 35.5% to $2.73 billion.

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Revenues in the Health Care Benefits segment increased 23.3% to $32.96 billion, primarily driven by growth in the Medicare and individual exchange product lines.

The Medical benefit ratio increased from 88.5% to 94.8% compared to the prior year, driven by increased utilization, the unfavorable impact of the previously disclosed decline in the company's Medicare Advantage star ratings for the 2024 payment year, and the impact of higher acuity in Medicaid.

Medical membership as of December 31, 2024, of 27.1 million, increased by 1.4 million members compared with December 31, 2023, reflecting increases in the Medicare and individual exchange product lines.

Health Services segment (offering pharmacy benefit management) sales decreased 4.3% to $47.02 billion, primarily driven by the previously announced loss of a large client and continued pharmacy client price improvements. These decreases were partially offset by the pharmacy drug mix, increased contributions from the company's healthcare delivery assets, and growth in specialty pharmacy.

Pharmacy & Consumer Wellness segment sales increased 7.5% to $33.51 billion, primarily driven by pharmacy drug mix and increased prescription volume.

Prescriptions filled increased by 3.3%, and Same-store prescription volume increased by 5.9% in the quarter.

Guidance: CVS Health forecasts fiscal year 2025 adjusted EPS of $5.75-$6.00 versus consensus of $5.96.

The company expects GAAP EPS of $4.58 to $4.83, with cash flow from operations guidance of approximately $6.5 billion.

In the last 12 months, CVS stock has fallen by 29%. The stock has jumped today on positive Q4 report.

Price Action: CVS stock is up 9.89% at $60.44 during the premarket session on last check Wednesday

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