CVS Health (NYSE:CVS) on Wednesday reported first-quarter results that beat earnings and revenue expectations, but the company lowered its full-year profit guidance due to costs related to recent acquisitions.
Earnings per share came in at $2.20 adjusted, vs. $2.09 expected, on revenue of $85.28 billion, vs. $80.81 billion expected.
For the quarter ended March 31, CVS posted profit of $2.14 billion, or $1.65 a share, compared with $2.35 billion, or $1.77 a share, a year earlier. Excluding one-time items, the company reported earnings of $2.20 per share for the period.
CVS reported total revenue of $85.28 billion, an 11% increase over the $76.83 billion a year earlier.
CVS lowered its 2023 adjusted earnings guidance to a range of $8.50 to $8.70, which is 20 cents lower than its previous projection of $8.70 to $8.90.
The company lowered its guidance due to costs associated with its $8 billion acquisition of Signify Health and its $10.6 billion purchase of Oak Street Health, among other items.
CVS’ health services segment booked revenue of $44.59 billion, a 12.6% increase over sales of $39.62 billion in the same quarter last year. The division includes its pharmacy benefit manager CVS Caremark and health-care services delivered in medical clinics, through telehealth and at home.
Pharmacy claims processed in this division increased 3.7% compared to first quarter 2022 due in part to an elevated cough, cold and flu season.
CVS shares retreated $2.31, or 3.2%, to $70.45.
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