Solid Q2 Results Help CVS Health (CVS) Defy Market Rout

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A comfortable top and bottom-line beat keeps the healthcare giant on pace to produce a juicy $13 billion in operating cash flow in 2023.

A comfortable top and bottom-line beat keeps CVS Health on pace to produce a juicy $13 billion in operating cash flow in 2023.CVS Health reported Q2 results this morning. Specifically, revenues for the period grew 10.3% from the prior year to $88.9 billion and came in over $2 billion above the $86.53 billion consensus estimate as the company continued to benefit from solid growth across all of its segments.

The higher revenues and better purchasing economics in Health Services helped limit the pressure put on profit margins from lower pharmacy reimbursements and the anticipated decline in COVID-19 vaccinations and diagnostic testing in Pharmacy & Consumer Wellness, as well as increased outpatient utilization in Medicare Advantage when compared with pandemic-reduced utilization levels in the prior year. As a result, adjusted earnings fell by only 12.6% to $2.

CVS Health is one of the stocks recommended in our market-beating investment newsletter, Forbes Investor. To find more beaten down, undervalued stocks with significant upside like CVS, try Forbes InvestorThis solid operating performance also keeps CVS well on track to achieve its 2023 adjusted earnings guidance of $8.50-8.70 per share, which it reiterated. While the midpoint of this implies the company will earn just $4.19 per share over the remainder of the year versus the $4.

 

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