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CVS Health (CVS) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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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.
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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.