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CVS Health (CVS) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates
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The upcoming report from CVS Health (CVS - Free Report) is expected to reveal quarterly earnings of $1.74 per share, indicating a decline of 21.3% compared to the year-ago period. Analysts forecast revenues of $91.56 billion, representing an increase of 3% year over year.
The current level reflects an upward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some CVS Health metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Net revenue- Health Services segment' to come in at $41.24 billion. The estimate indicates a year-over-year change of -10.8%.
Analysts predict that the 'Revenue- Pharmacy & Consumer Wellness Segment' will reach $30.12 billion. The estimate indicates a year-over-year change of +4.7%.
Analysts' assessment points toward 'Revenue- Health Care Benefits' reaching $32.57 billion. The estimate suggests a change of +21.8% year over year.
The consensus among analysts is that 'Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy' will reach $23.97 billion. The estimate indicates a year-over-year change of +6%.
The average prediction of analysts places 'Medical benefit ratio (MBR)' at 90.0%. The estimate is in contrast to the year-ago figure of 86.2%.
According to the collective judgment of analysts, 'Medical membership - Total' should come in at 26,995.26 thousand. Compared to the present estimate, the company reported 25.63 million in the same quarter last year.
Analysts forecast 'Medical membership - ASC - Commercial' to reach 14,109.50 thousand. Compared to the present estimate, the company reported 14.11 million in the same quarter last year.
It is projected by analysts that the 'Medical membership - Insured - Medicare Supplement' will reach $1.30 billion. The estimate is in contrast to the year-ago figure of $1.35 billion.
The collective assessment of analysts points to an estimated 'Medical membership - Insured - Commercial' of 4,726.25 thousand. Compared to the current estimate, the company reported 4.03 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Medical membership - Commercial - Total' will likely reach 18,835.75 thousand. Compared to the present estimate, the company reported 18.15 million in the same quarter last year.
Based on the collective assessment of analysts, 'Medicare Prescription Drug Plan (standalone)' should arrive at 4,945.25 thousand. Compared to the current estimate, the company reported 6.09 million in the same quarter of the previous year.
The consensus estimate for 'Medical membership - Medicaid - Total' stands at $2.57 billion. The estimate compares to the year-ago value of $2.73 billion.
Shares of CVS Health have demonstrated returns of +5.9% over the past month compared to the Zacks S&P 500 composite's -0.4% change. With a Zacks Rank #4 (Sell), CVS is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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CVS Health (CVS) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates
The upcoming report from CVS Health (CVS - Free Report) is expected to reveal quarterly earnings of $1.74 per share, indicating a decline of 21.3% compared to the year-ago period. Analysts forecast revenues of $91.56 billion, representing an increase of 3% year over year.
The current level reflects an upward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some CVS Health metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts expect 'Net revenue- Health Services segment' to come in at $41.24 billion. The estimate indicates a year-over-year change of -10.8%.
Analysts predict that the 'Revenue- Pharmacy & Consumer Wellness Segment' will reach $30.12 billion. The estimate indicates a year-over-year change of +4.7%.
Analysts' assessment points toward 'Revenue- Health Care Benefits' reaching $32.57 billion. The estimate suggests a change of +21.8% year over year.
The consensus among analysts is that 'Revenue- Pharmacy & Consumer Wellness Segment- Pharmacy' will reach $23.97 billion. The estimate indicates a year-over-year change of +6%.
The average prediction of analysts places 'Medical benefit ratio (MBR)' at 90.0%. The estimate is in contrast to the year-ago figure of 86.2%.
According to the collective judgment of analysts, 'Medical membership - Total' should come in at 26,995.26 thousand. Compared to the present estimate, the company reported 25.63 million in the same quarter last year.
Analysts forecast 'Medical membership - ASC - Commercial' to reach 14,109.50 thousand. Compared to the present estimate, the company reported 14.11 million in the same quarter last year.
It is projected by analysts that the 'Medical membership - Insured - Medicare Supplement' will reach $1.30 billion. The estimate is in contrast to the year-ago figure of $1.35 billion.
The collective assessment of analysts points to an estimated 'Medical membership - Insured - Commercial' of 4,726.25 thousand. Compared to the current estimate, the company reported 4.03 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Medical membership - Commercial - Total' will likely reach 18,835.75 thousand. Compared to the present estimate, the company reported 18.15 million in the same quarter last year.
Based on the collective assessment of analysts, 'Medicare Prescription Drug Plan (standalone)' should arrive at 4,945.25 thousand. Compared to the current estimate, the company reported 6.09 million in the same quarter of the previous year.
The consensus estimate for 'Medical membership - Medicaid - Total' stands at $2.57 billion. The estimate compares to the year-ago value of $2.73 billion.
View all Key Company Metrics for CVS Health here>>>
Shares of CVS Health have demonstrated returns of +5.9% over the past month compared to the Zacks S&P 500 composite's -0.4% change. With a Zacks Rank #4 (Sell), CVS is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>