CVS Health (NYSE:CVS) on Wednesday reported mixed fourth-quarter results and gave its forecast for the year, which fell shy of Wall Street's expectations.
Earnings per share came in at $2.14, adjusted, vs. $2.05 expected by analysts. Revenue was $54.42 billion vs. $54.58 billion expected.
For 2019, CVS forecasts adjusted earnings between $6.68 and $6.88 per share, below the $7.41 per share analysts had expected. The company expects revenue in the range of $249.86 billion and $254.29 billion, according to slides from CVS' conference call with analysts. The Street had expected $247.61 billion for the year.
"2019 will be a year of transition as we integrate Aetna and focus on key pillars of our growth strategy," CVS CEO Larry Merlo said in a statement.
CVS closed its $70-billion acquisition of health insurer Aetna in November. In addition to the price CVS paid to buy the company, it will need to spend money integrating the insurer and bringing its vision for the combined company to life.
Executives warned investors at the J.P. Morgan Healthcare Conference in January that CVS would face more headwinds than tailwinds this year, such as pricing and reimbursement pressures and the need for increased investment.
Merlo says the company is "fully aware" it will need to address challenges that will affect its financial results this year.
Last week, CVS unveiled its HealthHUBs, or concept stores that contain fewer traditional drugstore items like greeting cards and more health services like blood draws and health screenings.
Shares declined $5.99, or 8.6%, to $63.90
