CVS Health Earnings Preview: What to Expect
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With a market cap of $83.1 billion, CVS Health Corporation (CVS) is a leading healthcare solutions company, offering a wide range of services including health insurance, pharmacy benefit management, and retail pharmacy. Through its three main segments - Health Care Benefits; Health Services; and Pharmacy & Consumer Wellness, it serves a diverse clientele ranging from individuals to large organizations and government programs.
The Woonsocket, Rhode Island-based company is expected to release its fiscal Q1 2025 earnings results before the market opens on Thursday, May 1. Ahead of this event, analysts expect CVS to report an adjusted EPS of $1.67, up 27.5% from $1.31 in the prior year's quarter. It has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.
For fiscal 2025, analysts forecast the pharmacy and insurance giant to post adjusted EPS of $5.90, reflecting a 8.9% increase from $5.42 in fiscal 2024. Looking ahead, adjusted EPS is projected to grow 15.4% year-over-year to $6.81 in fiscal 2026.
CVS has underperformed the broader markets over the past 52 weeks, with shares down 2.7%, compared to the S&P 500 Index's ($SPX) 8.2% gain and the Health Care Select Sector SPDR Fund's (XLV) 2.5% dip over the same period.
Shares of CVS Health climbed over 14.9% after the company beat Q4 2024 expectations and issued better-than-expected 2025 guidance. CVS reported $97.7 billion in revenue and adjusted EPS of $1.19, above the estimates, driven by strong performance in the Pharmacy & Consumer Wellness segment. Investors were also encouraged by management's 2025 EPS forecast of $5.75 to $6, signaling recovery from Medicare Advantage reimbursement headwinds.
Analysts' consensus rating on CVS stock is bullish, with a "Strong Buy" rating overall. Out of 23 analysts covering the stock, opinions include 17 "Strong Buys,” two "Moderate Buys," and four "Holds.” The average analyst price target for CVS is $75.23, suggesting a potential upside of 14.1% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.