CVS beats profits and remains motherly with 2025 revenue guidance
cvs (CVS) reported earnings for the fourth quarter on Wednesday and 2024, falling below Wall Street expectations and increasing the share price by nearly 8% in pre-market trading.
Full year revenue was $372.8 billion, with fourth quarter revenue of $97.7 billion, compared to Wall Street’s $96.8 billion forecast. The healthcare benefits segment, which includes a variety of insurance products, was slightly reduced due to ongoing Medicare and Medicaid headwinds. It has influenced my colleagues toodrags the company’s revenue.
Still, its retail pharmaceutical business is in the healthcare services segment when business models are struggling and growing.
CVS reported a medical loss rate (MLR). This provides insight into how much the insurance sector is spending compared to the 92.5% premium dollar. This is a slight improvement from the record high reported in October in third quarter revenues at 95.2%. Affordable Care Act requires insurers to spend between 80% and 85% of their premiums, and Wall Street considers the bottom edge of the scale the most advantageous.
Moreover, even with the new White House in place, the company remains exposed to attempts to curb the role of pharmacy benefits managers. CVS is the largest.
CVS also marks the turbulent year that ended with new CEO David Joyner and was at the helm towards the end of the year. In addition to headwinds in government insurance business, CVS fights activist investors and The weight of splitting the company. The company’s profits continue to decline 38% year-on-year, reporting $8.5 billion for the full year in 2024, compared to $13.7 billion for the previous year.
The stock fell 40% last year, and the company had previously withheld its 2025 guidance. CVS released guidance for Wednesday 2025, estimated adjusted earnings per share between $5.75 and $6, but did not provide annual revenue guidance.
“We continue to grow in key areas of our business, including the pharmacy and consumer wellness segment, but we are addressing the industry-wide challenges that have impacted the healthcare benefits segment,” Joyner said Wednesday. said in a statement.
Anjalee Kachmli He is a senior health reporter for Yahoo Finance and covers Pharma, Insurance, Care Services, Digital Health, PBMS, and health policy and politics. Of course, it includes the GLP-1. Follow Anjalee on social media platforms X, LinkedIn, and Bluesky @anjkhem.
Read the latest financial and business news from Yahoo Finance