CVS Health Prepares for Q1 2025 Earnings Announcement
With a market cap of $83.1 billion, CVS Health Corporation (CVS) stands as a prominent healthcare solutions provider, delivering a variety of services such as health insurance, pharmacy benefit management, and retail pharmacy. The company operates through three main segments: Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness, catering to a wide range of clients, including individuals, large organizations, and government programs.
Upcoming Earnings Report
The company, based in Woonsocket, Rhode Island, is set to release its fiscal Q1 2025 earnings results before the market opens on Thursday, May 1. Analysts predict CVS will report an adjusted EPS of $1.67, which represents a 27.5% increase from $1.31 in the same quarter last year. In recent quarters, CVS has exceeded Wall Street’s earnings expectations three out of four times, with one miss noted.
Fiscal Year 2025 Projections
For fiscal 2025, analysts forecast an adjusted EPS of $5.90 for the pharmacy and insurance giant, reflecting an 8.9% increase from $5.42 in fiscal 2024. This growth trajectory is expected to continue, with adjusted EPS projected to rise 15.4% year-over-year to $6.81 in fiscal 2026.
Stock Performance Overview
Over the past 52 weeks, CVS Health has underperformed the broader market, with shares down 2.7%. In contrast, the S&P 500 Index ($SPX) gained 8.2%, while the Health Care Select Sector SPDR Fund (XLV) saw a 2.5% decline during the same timeframe.
Recent Developments
CVS Health shares surged over 14.9% following a successful Q4 2024 result, where the company exceeded expectations and provided a optimistic 2025 guidance. CVS reported revenue of $97.7 billion and an adjusted EPS of $1.19, exceeding forecasts, primarily due to robust performance in the Pharmacy & Consumer Wellness segment. Investors found optimism in management’s 2025 EPS forecast of $5.75 to $6, signaling recovery from recent challenges related to Medicare Advantage reimbursement.
Analyst Consensus Ratings
Analysts maintain a bullish outlook on CVS, with a consensus rating of “Strong Buy.” Among the 23 analysts covering the stock, there are 17 “Strong Buys,” two “Moderate Buys,” and four “Holds.” The average price target for CVS is $75.23, indicating a potential upside of 14.1% from current stock levels.
On the date of publication,
Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For additional information, please view the Barchart Disclosure Policy here.
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