CVS Health (CVS) q1 2025 earnings

CVS Health On Thursday, he reported earnings and revenues in the first quarter, which achieved the achievements of estimates and raised their instructions, because his restless insurance business He showed some improvement during this period.

CVS shares increased by 7% on Thursday in trade in front of the market.

The company is now expecting that profit corrected by a whole year in the amount of 6 to 6.20 USD per share, compared to previous guidelines from 5.75 to 6 USD per share.

But the company has revised its GAAP guidelines diluted EPS to be lower, which includes fees related to the legal battle with the participation of a subsidiary of the Omnicre pharmaceutical service providers. This week, the jury recognized the Omnicre to be responsible for drug dosing without valid prescriptions for the elderly and disabled in the field of long -term assistance and care. CVS plans to appeal.

The company did not provide the forecast of revenues for a year. CVS said that “he maintains a careful view of the rest of the year” in the light of continuous higher medical costs and “macro wind potential”.

“We were smarter about the markets we wanted, and the life we ​​wanted to compete for, which is why we actually planned and budgeting for increased trends,” said CVS CEO David Joyner in an interview with CNBC, referring to markets that the insurance unit operated and higher medical costs and higher medical costs and higher costs

“So I think you don't see the surprise on our part, because we are actually planning increased trends this year,” he added.

Joyner said that the company is observing the potential influence of the president Donald Trump 'S Planned tariffs for pharmaceuticals imported to the USA

“On the pharmacy side, I think it is highly dependent on what is happening next week or two, when they announce the consequences of tariffs for producers,” said CNBC. Joyner added that the vast majority of company retail products from the front of stores come from the USA, “what should be a benefit for us.”

Here's what CVS reported in the first quarter compared to what Wall Street expected, based on a survey conducted by LSEG analysts:

• Profit per share: USD 2.25 per corrected shares compared to USD 1.70
• Income: Expected $ 94.59 billion vs. $ 93.64 billion

The company's insurer, Aetna and its rivals, have been warned by higher than expected medical costs over the past year, when more Medicare Advantage patients return to hospitals to delay during the pandemic. But for the first time in several quarters, the insurance activity of CVS showed some signs of improvement.

The indicator of the unit's medical services – the measure of total medical expenses paid in relation to the collected contributions – dropped to 87.3% from 90.4% a year earlier. The lower indicator usually indicates that the company has collected more in contributions than paid benefits, which causes higher profitability.

CVS said that the movement partly reflects stronger results in the Medicare industry and improved the assessment of Medicare Advantage Star for the 2025 payment year. These assessments help patients compared to the quality of health plans and drugs Medicare.

“I think that investments and talent, which allowed us to focus on both execution and operations … actually helped to determine the results you see,” said Joyner, referring to executive shuffling last year, which used the new leader of the insurance unit and other parts of the company.

The results rest in the second full quarter with JoynerFor many years CVS director, as the general director of the retail pharmacy network. Joyner replaced Karen Lynch in mid -October, because CVS fought to increase profits and improve their results in the warehouse.

The company has undergone the management of the management as part of a wider implementation plan, which covers $ 2 billion in cost reductions in the next few years.

Despite this, the CVS efficiency has been partly compensated by a fee of $ 431 million from the so -called contribution deficiency reserves in the insurance department, which is related to the expected losses in the year of insurance in 2025. This refers to the liability that the insurer may need if future contributions are not enough to pay for the expected claims and expenses.

The company recorded a net income of USD 1.78 billion, i.e. USD 1.41 per share for the first quarter. Compared to net income in the amount of USD 1.12 billion, i.e. 88 cents per share for the period.

Excluding some items, such as depreciation of intangible assets, restructuring fees and capital losses, corrected earnings amounted to USD 2.25 per share for a quarter.

CVS reserved sales of $ 94.59 billion in the first quarter, which is an increase of 7% compared to the same period a year ago due to the increase in all three business segments.

However, sales in the company's retail segment have left the Wall Street expectations regarding the quarter, according to Streetaccount. This activity was exerted on pressure by soft consumer expenses and lower recipe phrases.