Investing.com -- CVS Health Corp (NYSE:CVS) lowered its financial guidance for 2023, citing costs linked to two recent acquisitions that were part of an effort by the U.S. pharmacy chain to expand its offerings following an easing in COVID 19-related revenues.
The Rhode Island-based company said it now expects adjusted earnings per share to come in at between $8.50 and $8.70 in its current fiscal year, down from its prior outlook of between $8.70 and $8.90.
CVS said the revision was partly the result of "integration" expenses related to the purchases of home healthcare service provider Signify Health and primary care provider Oak Street Health. The deals were completed in March and May, respectively.
"These additions are core to our strategy and will help unlock future growth as we push further into value-based care, which prioritizes keeping people healthy," said president and chief executive officer Karen Lynch in a statement.
Shares in CVS were in the red in premarket trading on Wednesday.
In the first quarter, CVS posted adjusted earnings per share of $2.20, down from $2.30 in the corresponding period last year. However, this total still beat Bloomberg consensus estimates of $2.09.