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Compared to Estimates, CVS Health (CVS) Q4 Earnings: A Look at Key Metrics
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For the quarter ended December 2023, CVS Health (CVS - Free Report) reported revenue of $93.81 billion, up 11.9% over the same period last year. EPS came in at $2.12, compared to $1.99 in the year-ago quarter.
The reported revenue represents a surprise of +3.31% over the Zacks Consensus Estimate of $90.8 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +5.47%.
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): 88.5% versus 88% estimated by six analysts on average.
Medical membership - Total: 25,659 thousand versus the five-analyst average estimate of 25,521.32 thousand.
Medical membership - Medicaid - Total: $2.52 billion versus the four-analyst average estimate of $2.48 billion.
Medical membership - Medicare Advantage - Total: 3,460 thousand compared to the 3,449.25 thousand average estimate based on four analysts.
Revenue- Pharmacy & Consumer Wellness Segment- Other: $585 million versus $524.95 million estimated by four analysts on average.
Revenue- Pharmacy & Consumer Wellness Segment: $31.19 billion versus $30.53 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
Revenue- Health Care Benefits Segment- Services: $1.45 billion versus the four-analyst average estimate of $1.46 billion.
Revenue- Health Care Benefits Segment- Premiums: $25.07 billion compared to the $24.01 billion average estimate based on four analysts.
Revenue- Pharmacy & Consumer Wellness Segment- Front store: $5.86 billion compared to the $6.47 billion average estimate based on four analysts.
Net revenue- Health Services segment: $49.15 billion versus the four-analyst average estimate of $46.17 billion. The reported number represents a year-over-year change of +12.3%.
Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy: $24.74 billion versus the four-analyst average estimate of $23.53 billion.
Revenue- Health Care Benefits Segment- Net investment income: $209 million versus $181.60 million estimated by three analysts on average.
Shares of CVS Health have returned -8.2% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Compared to Estimates, CVS Health (CVS) Q4 Earnings: A Look at Key Metrics
For the quarter ended December 2023, CVS Health (CVS - Free Report) reported revenue of $93.81 billion, up 11.9% over the same period last year. EPS came in at $2.12, compared to $1.99 in the year-ago quarter.
The reported revenue represents a surprise of +3.31% over the Zacks Consensus Estimate of $90.8 billion. With the consensus EPS estimate being $2.01, the EPS surprise was +5.47%.
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): 88.5% versus 88% estimated by six analysts on average.
- Medical membership - Total: 25,659 thousand versus the five-analyst average estimate of 25,521.32 thousand.
- Medical membership - Medicaid - Total: $2.52 billion versus the four-analyst average estimate of $2.48 billion.
- Medical membership - Medicare Advantage - Total: 3,460 thousand compared to the 3,449.25 thousand average estimate based on four analysts.
- Revenue- Pharmacy & Consumer Wellness Segment- Other: $585 million versus $524.95 million estimated by four analysts on average.
- Revenue- Pharmacy & Consumer Wellness Segment: $31.19 billion versus $30.53 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
- Revenue- Health Care Benefits Segment- Services: $1.45 billion versus the four-analyst average estimate of $1.46 billion.
- Revenue- Health Care Benefits Segment- Premiums: $25.07 billion compared to the $24.01 billion average estimate based on four analysts.
- Revenue- Pharmacy & Consumer Wellness Segment- Front store: $5.86 billion compared to the $6.47 billion average estimate based on four analysts.
- Net revenue- Health Services segment: $49.15 billion versus the four-analyst average estimate of $46.17 billion. The reported number represents a year-over-year change of +12.3%.
- Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy: $24.74 billion versus the four-analyst average estimate of $23.53 billion.
- Revenue- Health Care Benefits Segment- Net investment income: $209 million versus $181.60 million estimated by three analysts on average.
View all Key Company Metrics for CVS Health here>>>Shares of CVS Health have returned -8.2% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.