CVS chops 2023 forecast after strong first quarter

CVS chops 2023 forecast after strong first quarter

CVS Health beat first-quarter expectations on a jump in revenue from its pharmacy benefits management business but chopped the 2023 earnings projections it issued in the fall.

The drugstore chain, pharmacy benefit manager and insurer said Wednesday that it now expects adjusted earnings of $8.50 to $8.70 per share for the year. That’s down 20 cents on both ends of the range from a forecast it debuted in November and reaffirmed in February, and short of the $8.76 Wall Street had been projecting, according to a poll of analysts by FactSet.

In the third quarter, adjusted earnings totaled $2.20 per share, on $85.3 billion in total revenue.

Analysts predicted earnings of $2.09 per share on $80.79 billion in revenue.

CVS operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It runs prescription drug plans for big clients like insurers and employers through a large pharmacy benefit management business.

It also provides health insurance for more than 24 million people through its Aetna arm.

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