CVS Reports Strong Q4 Results; Shares Fall 2.6% Pre-Market

Shares of healthcare firm CVS Health Corp. (NYSE: CVS) were trading 2.6% down in the pre-market session on Wednesday, even though the company reported strong financial results for the fourth quarter of 2021.

Adjusted EPS came in at $1.98, higher than the Street’s estimate of $1.61 and the year-ago EPS of $1.30.

Total revenues increased 10.1% year-over-year to $76.6 billion, exceeding analysts’ expectations of $74.89 billion.

The Health Care Benefits segment’s revenues rose 8.4% to $20.7 billion; Pharmacy Services segment’s revenues jumped 8.2% to $39.3 billion; and Retail/LTC segment’s revenues climbed 12.7% to $27.1 billion.

Adjusted operating income totaled $4.1 billion during the quarter, reflecting a year-over-year rise of 40.8%. The increase was driven by higher prescription and front-store volume.

CVS Health President and CEO, Karen S. Lynch, said, “We’re engaging millions of customers across our businesses and in our community health destinations, becoming an even bigger part of their everyday health. That’s clearly reflected in our performance, but more importantly in our potential.”

Guidance

For 2022, the company expects adjusted EPS to range from $8.10 to $8.30, in line with the consensus estimate of $8.28.

About CVS

Headquartered in Rhode Island, CVS offers retail pharmacy, pharmacy benefits management and health insurance services. Its brands include CVS Pharmacy, CVS Caremark, and Aetna, among others.

Price Target

Overall, the stock has a Strong Buy consensus rating based on 15 Buys and 3 Holds. The average CVS stock forecast of $115.76 implies 4.5% upside potential. Shares have gained 50.2% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (NYSE: SEMR), the world’s biggest website usage monitoring service, offers insight into CVS’ performance.

According to the tool, compared to the previous year, CVS’ website traffic registered a 14.3% decline in global visits in December. However, the website traffic has increased 57.8% year-to-date against the same period last year.

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