Proactive Investors - CVS Health Corp (NYSE:CVS) reported a near doubling in profits over 2023 on Wednesday but cut guidance for the year ahead on the prospect of higher medical costs.
Adjusted earnings per share will likely sit at US$8.30 for 2024, the healthcare firm said in a full-year earnings release, rather than as previously anticipated at US$8.50.
Cash flow guidance from operations was slashed from $12.5 billion to $12.0 billion meanwhile, as CVS said trends of higher medical costs were now being recognized.
“We will continue to drive affordable access to care when, where, and how people want, while we improve transparency throughout the health care system,” chief executive Karen S. Lynch commented.
For the year to December, net income almost doubled from US$4.33 billion to US$8.37 billion, aided by double-digit growth in CVS’ healthcare benefits and services businesses, which themselves benefitted from a boost in Obamacare enrollment.
Fourth quarter revenue of US$93.81 billion, up 11.9% year-on-year, beat FactSet consensus of US$90.58 billion, alongside adjusted per-share earnings, which came in at US$2.12 compared to an anticipated US$1.98.
“With a focus on delivering care and value, we had a strong fourth quarter and full year in 2023 as we build a world of health around every consumer,” Lynch added.
Shares climbed 2.5% to US$75.64.