In an SEC filing on Thursday, CVS Health Corporation (NYSE: CVS) communicated that its top officials will reiterate projections for 2022 in a meeting with investors, which is to be held this month.
As noted, the projections that will be reaffirmed include GAAP earnings per share of $6.93-$7.13, adjusted earnings of $8.20-$8.40 per share, and cash flow from operating activities of $12-$13 billion.
The reason behind this filing was to let stakeholders know that CVS Health is finding it difficult to assess the impact of the divestment of PayFlex Holdings, Inc. on its 2022 financials. The deal was structured in April and completed on June 1, 2022.
PayFlex Holdings, Inc. is a unit of CVS Health that provides services related to health savings accounts.
Shares of CVS declined 1.2% to close at $92.74 on Thursday.
A Snapshot of Q1 Results
In May, CVS Health delivered better-than-expected results for the first quarter of 2022.
Its adjusted earnings of $2.22 per share exceeded the consensus estimate of $2.15 per share by 3.3%. Also, revenues of $76.83 billion were 1.9% above analysts’ expectations of $75.39 billion.
Stock Rating
Overall, the Street is cautiously optimistic about the prospects of CVS Health and has a Moderate Buy consensus rating based on six Buys and five Holds. CVS’ price forecast of $116.80 suggests 25.94% upside from current levels. Shares of the company have grown 8.5% over the past year.
A few days ago, Lance Wilkes of Bernstein lowered the rating on CVS Health to Hold from Buy. The analyst also maintained the price target of $112 (20.77% upside potential).
Risk Analysis
Per the TipRanks Risk Analysis tool, CVS Health is exposed to 47 risks. Of this, risks related to Finance & Corporate account for six risks.
Conclusion
CVS Health is dedicated to providing personalized and affordable healthcare solutions to its consumers. Its recent information about its projection will be helpful for investors.
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