CVS Health (NYSE:CVS), a healthcare company, ticked higher in pre-market trading after the company forecast an upbeat outlook during its Investor Day. The company has projected its FY24 revenues to be at least $366 billion, above analysts’ estimates of $345.81 billion. In addition, adjusted earnings are forecast to be at least $8.50 per share, in line with Street estimates.
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Meanwhile, CVS Health reiterated its FY23 guidance. The firm expects revenues to be in the range of $351.5 million to $357.3 billion, while adjusted earnings are likely to be between $8.50 and $8.70 per share.
The company also upped its quarterly dividend to $0.665 per share, an increase of 10% from $0.605 per share, payable on February 1 to holders of record on January 22, 2023.
Furthermore, CVS Health announced that its healthcare services will be unified under the Healthspire brand. This includes Caremark, Cordavis, Oak Street Health, Signify Health, and MinuteClinic. The company will roll out Healthspire this month and advance it through next year.
The company’s CFO, Tom Cowhey, commented, “By broadening our portfolio of integrated products and services, we expect to create a path to sustainable, profitable growth.”
Is CVS a Buy or Sell?
Analysts remain bullish about CVS stock with a Strong Buy consensus rating based on 13 Buys and three Holds. Even as CVS stock has dropped by more than 20% year-to-date, the average CVS price target of $87.73 implies an upside potential of 28.1% at current levels.
