CVS Health Corporation (CVS)

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Gear Up for CVS Health (CVS) Q1 Earnings: Wall Street Estimates for Key Metrics
By: Zacks Investment Research | April 26, 2024

The upcoming report from CVS Health CVS is expected to reveal quarterly earnings of $1.69 per share, indicating a decline of 23.2% compared to the year-ago period. Analysts forecast revenues of $89.22 billion, representing an increase of 4.6% year over year.

The consensus EPS estimate for the quarter has undergone a downward revision of 0.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain CVS Health metrics that are commonly tracked and forecasted by Wall Street analysts.

Analysts forecast 'Net revenue- Health Services segment' to reach $41.23 billion. The estimate points to a change of -7.5% from the year-ago quarter.

The combined assessment of analysts suggests that 'Revenue- Pharmacy & Consumer Wellness Segment' will likely reach $29.67 billion. The estimate points to a change of +6.3% from the year-ago quarter.

According to the collective judgment of analysts, 'Revenue- Health Care Benefits' should come in at $30.75 billion. The estimate suggests a change of +18.8% year over year.

The consensus estimate for 'Revenue- Health Care Benefits Segment- Services' stands at $1.44 billion. The estimate indicates a change of +4.6% from the prior-year quarter.

Based on the collective assessment of analysts, 'Medical benefit ratio (MBR)' should arrive at 88.3%. Compared to the present estimate, the company reported 84.6% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Medical membership - Total' of 26,542.28 thousand. The estimate is in contrast to the year-ago figure of 25,513 thousand.

The consensus among analysts is that 'Medical membership - Medicaid - Total' will reach $2.40 billion. The estimate compares to the year-ago value of $2.79 billion.

The average prediction of analysts places 'Medical membership - Medicare Advantage - Total' at 4,031.44 thousand. The estimate compares to the year-ago value of 3,387 thousand.

Analysts expect 'Medical membership - Commercial - Total' to come in at 18,770.50 thousand. The estimate is in contrast to the year-ago figure of 17,988 thousand.

Analysts predict that the 'Medical membership - Insured - Medicare Supplement' will reach $1.35 billion. Compared to the present estimate, the company reported $1.34 billion in the same quarter last year.

It is projected by analysts that the 'Pharmacy claims processed' will reach 463.11 million. The estimate is in contrast to the year-ago figure of 587.3 million.

Analysts' assessment points toward 'Medical membership - ASC - Commercial' reaching 14,253.67 thousand. Compared to the present estimate, the company reported 14,039 thousand in the same quarter last year.

CVS Health shares have witnessed a change of -15.6% in the past month, in contrast to the Zacks S&P 500 composite's -3.2% move. With a Zacks Rank #4 (Sell), CVS is expected underperform the overall market performance in the near term.

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