We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
Read MoreHide Full Article
CVS Health (CVS - Free Report) reported $89.76 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 10.6%. EPS of $2.21 for the same period compares to $2.09 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $88.2 billion, representing a surprise of +1.78%. The company delivered an EPS surprise of +3.76%, with the consensus EPS estimate being $2.13.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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): 85.7% versus 84.3% estimated by seven analysts on average.
Medical membership - Total: 25,688 thousand compared to the 25,518.92 thousand average estimate based on six analysts.
Medical membership - Insured - Medicare Supplement: $1.35 billion versus the five-analyst average estimate of $1.37 billion.
Medical membership - Medicare Advantage - Total: 3,438 thousand compared to the 3,449.78 thousand average estimate based on five analysts.
Revenue- Health Care Benefits Segment- Net investment income: $187 million versus $186.62 million estimated by five analysts on average.
Revenue- Health Care Benefits Segment- Services: $1.46 billion versus the five-analyst average estimate of $1.52 billion.
Revenue- Health Care Benefits Segment- Premiums: $24.65 billion compared to the $23.96 billion average estimate based on five analysts.
Net revenue- Health Services segment: $46.89 billion versus the five-analyst average estimate of $45.40 billion. The reported number represents a year-over-year change of +8.5%.
Revenue- Health Care Benefits: $26.30 billion versus $25.67 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
Revenue- Pharmacy & Consumer Wellness Segment- Other: $526 million versus $521.92 million estimated by five analysts on average.
Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy: $22.98 billion versus the five-analyst average estimate of $22.57 billion.
Revenue- Pharmacy & Consumer Wellness Segment: $28.87 billion versus $29.11 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.
Shares of CVS Health have returned -0.4% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CVS Health (CVS) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
CVS Health (CVS - Free Report) reported $89.76 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 10.6%. EPS of $2.21 for the same period compares to $2.09 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $88.2 billion, representing a surprise of +1.78%. The company delivered an EPS surprise of +3.76%, with the consensus EPS estimate being $2.13.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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): 85.7% versus 84.3% estimated by seven analysts on average.
- Medical membership - Total: 25,688 thousand compared to the 25,518.92 thousand average estimate based on six analysts.
- Medical membership - Insured - Medicare Supplement: $1.35 billion versus the five-analyst average estimate of $1.37 billion.
- Medical membership - Medicare Advantage - Total: 3,438 thousand compared to the 3,449.78 thousand average estimate based on five analysts.
- Revenue- Health Care Benefits Segment- Net investment income: $187 million versus $186.62 million estimated by five analysts on average.
- Revenue- Health Care Benefits Segment- Services: $1.46 billion versus the five-analyst average estimate of $1.52 billion.
- Revenue- Health Care Benefits Segment- Premiums: $24.65 billion compared to the $23.96 billion average estimate based on five analysts.
- Net revenue- Health Services segment: $46.89 billion versus the five-analyst average estimate of $45.40 billion. The reported number represents a year-over-year change of +8.5%.
- Revenue- Health Care Benefits: $26.30 billion versus $25.67 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.8% change.
- Revenue- Pharmacy & Consumer Wellness Segment- Other: $526 million versus $521.92 million estimated by five analysts on average.
- Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy: $22.98 billion versus the five-analyst average estimate of $22.57 billion.
- Revenue- Pharmacy & Consumer Wellness Segment: $28.87 billion versus $29.11 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.1% change.
View all Key Company Metrics for CVS Health here>>>Shares of CVS Health have returned -0.4% over the past month versus the Zacks S&P 500 composite's -2.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.