CVS Health (NYSE:CVS) experienced a significant drop in first-quarter profits and adjusted its full-year earnings forecast, leading to a premarket share decline of over 13%. Both earnings and revenue missed Wall Street projections. Adjusted earnings per share (EPS) for the quarter came in at $1.33, well below the $1.71 consensus. Revenue for the quarter reached $88.4 billion, falling short of the estimated $89.33 billion.

While first-quarter revenue showed a 3.7% increase from the previous year, driven by growth in the Health Care Benefits and Pharmacy & Consumer Wellness segments, it was partially offset by a decline in the Health Services segment. Despite revenue growth, adjusted EPS of $1.31 represented a sharp drop from $2.20 in the previous year, mainly due to the Health Care Benefits segment's operating results being pressured by increased usage in the Medicare business.

Looking ahead, CVS Health updated its full-year 2024 guidance, projecting a minimum adjusted EPS of $7.00, which falls short of the previous analyst consensus of $8.28. This revision reflects the company's expectation that the utilization pressure affecting the Health Care Benefits segment will persist throughout the year.