CVS Health (CVS) Income Q1 2025

CVS Pharmacy Logo can be seen on July 9, 2024 in Washington DC, USA.

Jakub Porzycki | Nurphoto | Getty pictures

CVS health On Thursday, he reported the result and income in the first quarter, which exceeded estimates and increased his guidance, since the restless insurance business showed a certain improvement in the reporting period.

The CVS shares rose by 7%on Thursday in the Premarket trade.

The company now expects to win the total year of $ 6.20 per share, from earlier instructions from $ 5.75 to $ 6 per share.

However, the company revised its GAAP -a -tached EPS guidelines in order to be lower, which includes charges in connection with a legal dispute in which the subsidiary of the Pharmacy Services provider, Omnicare is involved. A jury this week found that Omnicare is liable for the submission of medication without valid recipes to older and disabled people in assisted residential and long-term care facilities. CVS plans a calling.

The company has not offered sales forecast for the year. CVS said it was “a cautious view for the rest of the year” given the continued higher medical costs and “the potential for macro counterwind”.

“We have the markets we wanted and the life we ​​wanted to compete for

“I think why they see no surprise from our part is because we are actually planning for increased trends this year,” he added.

Joyner said

“On the pharmacy side, I think that it depends to a high degree of what will happen in the next one or two weeks if you announce the effects of tariffs on the manufacturers,” he told CNBC. Joyner added that the vast majority of the company's retail products come from the shops in the United States, “which should be an advantage for us”.

CVS reported in the first quarter compared to the expectations of Wall Street, based on a survey of LSEG analysts:

• Win each share: 2.25 USD per share adapted compared to USD 1.70 per share
• Revenue: 94.59 billion US dollars are expected compared to 93.64 billion US dollars

The company's insurer, Aetna, and its competitors were pursued by higher than expected medical costs last year, since more medicare advantages return to patients in hospitals who delayed them during pandemic. For the first time in several quarters, CVS insurance business seemed to show some signs of an improvement.

The medical performance ratio of unit – a measure of the entire medical expenditure compared to the awards collected – fell from 90.4% in the previous year to 87.3%. A lower ratio usually indicates that a company has collected more in premiums than was paid out in services, which leads to higher profitability.

According to CVS, the move sometimes reflects a stronger underlying service in its medical business and improved Medicare Advantage Star reviews for the payment year 2025. These reviews help patients to compare the quality of Medicare's health and drug plans.

“I think that investments and talents that enabled us to concentrate on the execution and the company … actually contributed to determining the performance they see,” said Joyner, referring to a redesign of the managing director in the past year, which was wearing a new leader for the insurance unit and other parts of the business.

The results end the second full quarter with Joyner, a long -time CVS manager, as CEO of the retail Drugsree Chain. Joyner succeeded Karen Lynch in mid -October because CVS had difficulty making higher profits and improving his stock performance.

As part of a more comprehensive turnaround plan, which contains a reduction in costs of 2 billion US dollars in the next few years, the company was enforced.

Still CVS ' Performance was partially compensated for by a fee of $ 431 million from so-called premium deficiency reserves in the insurance unit, which is connected to the expected losses in the year 2025. This relates to liability that an insurer may have to cover if future bonuses are not sufficient to pay expected demands and expenses.

The company achieved a net result of 1.78 billion US dollars or $ 1.41 per share in the first quarter. This is compared to a net profit of $ 1.12 billion or 88 cents per share for the period of previous year.

With the exception of certain objects, such as B. depreciation of intangible assets, restructuring costs and capital losses, the adjusted profits were 2.25 USD per share for the quarter.

CVS booked the sales of 94.59 billion US dollars for the first quarter, which rose to 7% in the same period last year, since they grow in all three business phases.

According to StreetCcount, sales in the segment of the retail pharmacy segment of the Wall Street company were missing the expectations of the quarter. This business was put under pressure by softer consumer expenditure and lower reimbursements for prescription drugs.

Strength across business areas

The CVS insurance business booked a turnover of 34.81 billion US dollars in the quarter, which increased an increase of 8% compared to the first quarter of 2024. Analysts expected the unit to take 33.51 billion US dollars for this period, according to Street Account estimates.

The device also recorded an adjusted operating result of $ 1.99 billion in the first quarter, compared to USD 732 million for the period of previous year.

Also on Thursday, CVS said that Aetna will also offer the marketplaces for the Affordable Care Act – also as individual exchanges – health insurance plans.

The department for pharmacy and consumer wellness department of CVS booked 31.91 billion dollars in the first quarter, which rose to an increase of more than 11% compared to the same period in the previous year.

According to StreetCcount, however, this was well below the 35.27 billion US dollars that the analysts expected for the quarter.

This unit provides regulations in more than 9,000 retail pharmacies from CVS and offers other pharmacy services such as vaccinations and diagnostic tests.

The Health Services CVS segment achieved sales of 43.46 billion US dollars in the quarter, which rose to an increase of almost 8% compared to the same quarter in 2024. According to Street Account, analysts expected sales of 43.64 billion dollars for this period.

This unit includes Caremark, one of the largest pharmaceutical beefic managers in the country. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medication or form that are covered by insurance and reimburses pharmacies for recipes.