CVS Health (CVS) Q1 2025

CVS Health On Thursday, profits and revenues were reported in the first quarter that topped the estimates and raised its instructions, just like them Disproiled insurance work It showed some improvement during the period.

CVS shares increased by 7 % in the pre -market trade on Thursday.

The company now expects modified profits from $ 6 to $ 6.20 per share, with an increase from previous guidelines from $ 5.75 to $ 6 per share.

But the company has reviewed the EPS guidelines for less, which includes fees related to a legal battle related to the pharmacy services provider, omnicare. This week, the omnicare jury has found responsible for getting rid of medicines without prescriptions for elderly and disabled individuals in the long -term care and care facilities. CVS plans to appeal.

The company did not provide revenue expectations for this year. CVS said it “maintains a cautious vision for the rest of the year” in light of the continuous high medical costs and “the possibility of total opposite winds.”

David Joinner, CEO CEO, said in an interview with CNBC, referring to the markets where the insurance unit, higher medical costs and higher medical costs work.

“I think why don’t you see a surprise on our part because we are already planning to high this year,” he added.

Joinner said that the company is monitoring the potential impact of the president Donald TrumpThe planned definitions on imported pharmaceutical preparations in the United States

“On the pharmacy side, I think it depends heavily on what is happening in the next week or two weeks when they announce the repercussions of definitions on manufacturers,” CNBC told CNBC. Gwenner added that the vast majority of the company’s retail products at the front of the stores are obtained in the United States, “which must be benefit to us.”

Here is what CVS for the first quarter compared to what Wall Street expected, based on a survey of analysts by LSEG:

• Arrow’s profits: $ 2.25 per share for $ 1.70 for the expected stock
• profit: 94.59 billion dollars for 93.64 billion dollars expected

The company’s insurance company, AETNA, and its competitors, were exposed to higher medical costs, expected during the past year, with more Medicare Advantage patients to hospitals due to the procedures for their delay during the epidemic. But for the first time in several quarters, CVS insurance appeared to show some signs of improvement.

The unit’s medical benefits – a measure of the total paid medical expenses for the collected installments – decreased to 87.3 % from 90.4 % in the previous year. The low percentage usually indicates that the company was collected in larger installments than the advantages, which leads to high profitability.

CVS said this step partially reflects the most powerful performance in its Medicare’s work and improving the 2025 Medicare Advantage classifications. These assessments help patients to compare the quality of health care and drugs.

“I think the investment and the talent that allowed us to focus on both implementation and practical … it has already helped to establish the performance you see,” said Gwenner.

The results excel over the second quarter with GynenerCVS for a long time director, as CEO CEO. Goenner Karen Lynch succeeded in mid -October, where CVS struggled to make higher profits and improve stock performance.

The company has undergone management as part of a broader transformation plan that includes 2 billion dollars In cost discounts over the next few years.

However, cvs’ performance It was partly compensated by $ 431 million in the reserves of the deficiency of the alleged installments in the insurance unit, which is linked to the expected losses in the coverage year 2025. This indicates the responsibility that the insurance company may need to cover whether the future insurance premiums are not sufficient to pay in exchange for the expected claims and expenses.

The company recorded a net income of $ 1.78 billion, or $ 1.41 per share, for the first quarter. This compares with the net income of $ 1.12 billion, or 88 cents per share, for the colloquial period.

With the exception of some items, such as extinguishing the unfinished assets, restructuring fees and capital losses, modified profits amounted to $ 2.25 per share for a quarter.

CVS booked $ 94.59 billion sales for the first quarter, an increase of 7 % of the same last period due to growth in all three business sectors.

But sales in the company’s retail pharmacy sector lost Wall Street’s expectations for this quarter, according to Streetaccount. This work was pressed through the most softened consumer spending and reduced compensation for the prescribed drugs.