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CVS Health (CVS) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
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CVS Health (CVS - Free Report) reported $85.28 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 11%. EPS of $2.20 for the same period compares to $2.22 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $81.6 billion, representing a surprise of +4.50%. The company delivered an EPS surprise of +6.28%, with the consensus EPS estimate being $2.07.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how CVS Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Medical benefit ratio (MBR): 84.6% versus 84.27% estimated by five analysts on average.
Medical membership - Total: 25513 thousand versus 25192.82 thousand estimated by four analysts on average.
Medical membership - Insured-Medicare Supplement: $1.34 billion versus $1.38 billion estimated by three analysts on average.
Medical membership - Insured-Medicaid: $2.29 billion compared to the $2.32 billion average estimate based on three analysts.
Revenue- Pharmacy & Consumer Wellness Segment: $27.92 billion compared to the $26.41 billion average estimate based on four analysts. The reported number represents a change of +9.9% year over year.
Net revenue- Pharmacy service segment: $44.59 billion compared to the $41.58 billion average estimate based on four analysts. The reported number represents a change of +13% year over year.
Revenue- Health Care Benefits: $25.88 billion compared to the $25.27 billion average estimate based on four analysts. The reported number represents a change of +12% year over year.
Revenue- Eliminations: -$13.30 billion compared to the -$12.11 billion average estimate based on four analysts.
Revenues- Premiums: $24.35 billion compared to the $23.36 billion average estimate based on three analysts. The reported number represents a change of +12.6% year over year.
Revenues- Services: $2.45 billion compared to the $2.36 billion average estimate based on three analysts. The reported number represents a change of -2.4% year over year.
Net investment income: $334 million versus $261.81 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +98.8% change.
Revenue- Health Care Benefits Segment-Net investment income: $164 million compared to the $174.31 million average estimate based on three analysts. The reported number represents a change of +84.3% year over year.
Shares of CVS Health have returned -4.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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CVS Health (CVS) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
CVS Health (CVS - Free Report) reported $85.28 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 11%. EPS of $2.20 for the same period compares to $2.22 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $81.6 billion, representing a surprise of +4.50%. The company delivered an EPS surprise of +6.28%, with the consensus EPS estimate being $2.07.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how CVS Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Medical benefit ratio (MBR): 84.6% versus 84.27% estimated by five analysts on average.
- Medical membership - Total: 25513 thousand versus 25192.82 thousand estimated by four analysts on average.
- Medical membership - Insured-Medicare Supplement: $1.34 billion versus $1.38 billion estimated by three analysts on average.
- Medical membership - Insured-Medicaid: $2.29 billion compared to the $2.32 billion average estimate based on three analysts.
- Revenue- Pharmacy & Consumer Wellness Segment: $27.92 billion compared to the $26.41 billion average estimate based on four analysts. The reported number represents a change of +9.9% year over year.
- Net revenue- Pharmacy service segment: $44.59 billion compared to the $41.58 billion average estimate based on four analysts. The reported number represents a change of +13% year over year.
- Revenue- Health Care Benefits: $25.88 billion compared to the $25.27 billion average estimate based on four analysts. The reported number represents a change of +12% year over year.
- Revenue- Eliminations: -$13.30 billion compared to the -$12.11 billion average estimate based on four analysts.
- Revenues- Premiums: $24.35 billion compared to the $23.36 billion average estimate based on three analysts. The reported number represents a change of +12.6% year over year.
- Revenues- Services: $2.45 billion compared to the $2.36 billion average estimate based on three analysts. The reported number represents a change of -2.4% year over year.
- Net investment income: $334 million versus $261.81 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +98.8% change.
- Revenue- Health Care Benefits Segment-Net investment income: $164 million compared to the $174.31 million average estimate based on three analysts. The reported number represents a change of +84.3% year over year.
View all Key Company Metrics for CVS Health here>>>Shares of CVS Health have returned -4.6% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.