Diversified healthcare company CVS Health (NYSE:CVS) will be announcing earnings results tomorrow morning. Here’s what investors should know.
CVS Health beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $95.43 billion, up 6.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ same-store sales estimates but a significant miss of analysts’ EPS estimates.
Is CVS Health a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CVS Health’s revenue to grow 3.3% year on year to $96.89 billion, slowing from the 11.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CVS Health has missed Wall Street’s revenue estimates twice over the last two years.
Looking at CVS Health’s peers in the health insurance providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 4.4%, and Humana reported revenues up 13.5%, topping estimates by 1.3%. Centene traded down 6.3% following the results.
Read our full analysis of Centene’s results here and Humana’s results here.
Investors in the health insurance providers segment have had steady hands going into earnings, with share prices flat over the last month. CVS Health is up 5.6% during the same time and is heading into earnings with an average analyst price target of $65.46 (compared to the current share price of $54.29).
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