CVS Health Gains 3% on Better Than Expected Outlook

CVS Health (NYSE:CVS) projected its 2024 revenue to surpass current market expectations, aiming for at least $366 billion compared to the Street's estimate of $345.5 billion. The company is also targeting an adjusted earnings per share (EPS) of at least $8.50 for 2024, aligning with consensus forecasts. Moreover, CVS Health anticipates generating a minimum of $12.5 billion in operational cash flow. These projections were announced ahead of CVS Health's 2023 Investor Day.

Following this announcement, CVS shares experienced a more than 3% increase intra-day today.

Additionally, CVS Health plans to introduce a novel pharmacy reimbursement model named CVS CostVantage. This model aims to transform the traditional reimbursement framework, emphasizing enhanced transparency and simplicity.

Furthermore, CVS Health reaffirmed its financial outlook for 2023. The company maintains its adjusted EPS forecast at around $8.60, with a possible variation of 10 cents, and anticipates revenues to be in the range of $351.5 to $357.3 billion. These figures are in line with the average analyst estimate, which predicts an EPS of $8.60 on revenues of approximately $353.7 billion.