CVS Health Surpasses Q4 Projections but Slashes Annual Forecast Due to Rising Expenses

CVS Health Corp. surpassed expectations for the fourth quarter, however, it has trimmed its annual outlook because of escalating costs.

Stellar Q4 Results for CVS Health

CVS Health Corp. reported better-than-expected results for Q4, with earnings of $1.34 per share, beating the analyst consensus of $1.32 per share. The company’s total revenue also rose by 4% to $69.6 billion, outpacing the projected $69.02 billion.

Rising Costs Impact Annual Outlook

Despite the positive Q4 results, CVS cut its annual outlook due to increasing costs. The company now expects to earn between $7.39 and $7.55 per share in 2022, down from the previous forecast of $7.58 per share. The pressure from rising costs is expected to impact the company’s bottom line.

Pharmacy Segment Performance

CVS’s pharmacy services segment, which includes prescription fulfillment and patient care, reported a 10.5% increase in revenue in Q4. However, the company’s retail and long-term care segment posted a modest 1.9% increase in revenue.

In conclusion, despite surpassing Q4 expectations, CVS Health Corp. has had to lower its annual outlook due to the pressure of rising costs. The company’s pharmacy services segment performed well, while modest growth was observed in its retail and long-term care segment.