Latest news with #CVS
Bloomberg
a day ago
- Business
- Bloomberg
Stock Movers: Microsoft, Meta, Ford
On this episode of Stock Movers: - Microsoft (MSFT) shares are soaring in premarket after it reported better-than-expected growth in its cloud business, with its Azure cloud-computing unit posting a 39% rise in sales, handily beating the 34% analysts expected. Microsoft is set to become the second company to reach a $4 trillion market capitalization after reporting quarterly earnings that beat Wall Street's expectations. - Meta (META) are higher this morning after Facebook's parent company gave a strong revenue forecast and reported second-quarter results that beat analysts' expectations. While it also raised its full-year forecast for capital expenditures, analysts said the company's spending was justified by its growth. - Ford (F) is lower after announcing an anticipated full-year net tariff impact of about $2 billion. Ford issued full-year guidance that is lower than its initial forecast over President Trump's tariff policies. Analyst Tom Narayan said potential headwinds include the status of electric vehicle tax credits, softness in Europe, Ford's warranty issue and liquidity. - CVS (CVS) is getting a boost in the premarket after the company boosted its adjusted earnings-per-share guidance for the full year, following second-quarter results that also topped expectations.
Yahoo
a day ago
- Business
- Yahoo
CVS raises outlook amid solid returns at health care benefits segment
- CVS has once again raised its full-year profit forecast, as the conglomerate said it was boosted by strength at its health care benefits and pharmacy and consumer wellness segments. Under CEO David Joyner, who took over at the helm of the company in October, CVS has been pushing to cut costs and has reshuffled its executive leadership team as it looks to turn around its fortunes following one of the most challenging periods in its six-decade history. In a statement, CVS said it has seen "significant and durable recovery"at its Aetna unit, as well as "growth and momentum" at its pharmacy division. Second-quarter net revenue grew by 8.4% versus a year ago to $98.92 billion, compared to analysts' estimates of $94.61 billion, fueled by better-than-anticipated results at its health care benefits and health services businesses. Adjusted earnings per share operating income edged up by 1.7% to $3.81 billion, while earnings per share came in at $1.81 -- both topping Wall Street projections. Following the returns, CVS said it expects adjusted per-share income to be between $6.30 to $6.40, up from a prior guidance of $6 to $6.20. Cash flow from operations is anticipated to be at least $7.5 billion, versus $7 billion previously. Shares of CVS ripped higher by more than 8% in premarket U.S. trading on Thursday. Related articles CVS raises outlook amid solid returns at health care benefits segment Surge of 50% since our AI selection, this chip giant still has great potential Apollo economist warns: AI bubble now bigger than 1990s tech mania Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
CVS Health tops second quarter expectations and hikes its full-year forecast again
NEW YORK (AP) — CVS Health tops second quarter expectations and hikes its full-year forecast again. Sign in to access your portfolio
CNBC
a day ago
- Business
- CNBC
CVS beats estimates, hikes adjusted profit outlook on retail pharmacy and insurance unit strength
CVS Health on Thursday reported second-quarter earnings and revenue that topped estimates and raised its adjusted profit outlook, as it sees strength in its retail pharmacy business and some improvement in its insurance unit. The company now expects fiscal 2025 adjusted earnings of $6.30 to $6.40 per share, up from previous guidance of $6 to $6.20 per share. CVS also cut its GAAP earnings guidance, without disclosing additional details. In an interview, CVS CEO David Joyner said the quarterly beat and guidance hike is in part "a tribute to the work and the effort underway within Aetna," the company's insurer. He was referring to a "multi-year recovery effort" at Aetna, which has been grappling with higher medical costs in privately run Medicare plans like the rest of the insurance industry. Joyner added that CVS' retail pharmacy business is "performing really well," demonstrating the company's efforts to introduce new technology that improves pharmacy operations and drives efficiency. He also pointed to the company's investments in labor and its new prescription drug pricing model, which has benefited payers and "separated the pharmacy from the pack." But the company's release said the strength in those two business units was offset by a decline in its health services segment. The results cap off the third full quarter with Joyner, a longtime CVS executive, as chief executive of the retail drugstore chain. Joyner succeeded Karen Lynch in mid-October, as CVS struggled to drive higher profits and improve its stock performance. Here's what CVS reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: The company posted net income of $1.02 billion, or 80 cents per share, for the first quarter. That compares with net income of $1.77 billion, or $1.41 per share, for the year-earlier period. Excluding certain items, such as amortization of intangible assets, restructuring charges and capital losses, adjusted earnings were $1.81 per share for the quarter. CVS booked sales of $98.92 billion for the first quarter, up 8.4% from the same period a year ago due to growth across all three of its business segments. As part of a broader turnaround plan, the company is pursuing $2 billion in cost cuts over the next several years. Joyner told CNBC that the company still has to close a few more locations as part of reaching that target. But he said CVS is also "focusing on being in the right geography," noting that the company is still buying stores in the Pacific Northwest because it doesn't have a big footprint there. All three of CVS' business segments beat Wall Street's revenue expectations for the second quarter. But the company's insurance unit is still under and other insurers have grappled with higher-than-expected medical costs over the last year as more Medicare Advantage patients return to hospitals for procedures they delayed during the pandemic. The insurance unit's medical benefit ratio – a measure of total medical expenses paid relative to premiums collected – increased to 89.9% from 89.6% a year earlier. A lower ratio typically indicates that a company collected more in premiums than it paid out in benefits, resulting in higher profitability. The company said that the increase was driven by a charge of $471 million from a so-called premium deficiency reserve, which is related to anticipated losses in the 2025 coverage year. That refers to a liability that an insurer may need to cover if future premiums are not enough to pay for anticipated claims and expenses. The second-quarter ratio was lower than the 90.6% that analysts were expecting, according to StreetAccount estimates. The insurance business booked $36.26 billion in revenue during the quarter, up more than 11% from the second quarter of 2024. Analysts expected the unit to take in $34.59 billion for the period, according to estimates from StreetAccount. CVS' pharmacy and consumer wellness division booked $33.58 billion in sales for the second quarter, up more than 12% from the same period a year earlier. The company said the increase was partly driven by higher volume at the pharmacy and the front of store, but offset by pharmacy reimbursement expected sales of $31.98 billion for the quarter, StreetAccount said. That unit dispenses prescriptions in CVS' more than 9,000 retail pharmacies and provides other pharmacy services, such as vaccinations and diagnostic testing. CVS' health services segment generated $46.45 billion in revenue for the quarter, up more than 10% compared with the same quarter in 2024. Analysts expected the unit to post $43.37 billion in sales for the period, according to StreetAccount. That unit includes Caremark, one of the nation's largest pharmacy benefit managers. Caremark negotiates drug discounts with manufacturers on behalf of insurance plans and creates lists of medications, or formularies, that are covered by insurance and reimburses pharmacies for prescriptions.
Boston Globe
a day ago
- Health
- Boston Globe
CVS and MGB want to collaborate to provide primary care at MinuteClinic in drug stores
Advertisement The clinics would join MGB's network of providers, which means they could refer patients to MGB hospitals, specialists, diagnostic services, and laboratories if they needed follow-up care. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Most MinuteClinic sites currently offer limited services, such as diagnosing strep throat or urinary tract infections or providing vaccinations for COVID-19, influenza, shingles, and other preventable illnesses. But in the past year, CVS began to offer broader adult primary care to members of health insurer Aetna, a subsidiary of CVS, in nearly a dozen states. Now MinuteClinic is poised to make its first foray into primary care in Massachusetts, assuming the state commission clears the way. The commission is reviewing the proposal to ensure it wouldn't raise the cost or hurt the quality of health care. If the commission has concerns, it can refer the matter to the state Attorney General's Office, the Department of Public Health, or another agency for further investigation. Advertisement The filings with the commission provided few details about the collaboration, including the specific primary care services the clinics would offer. Shannon Dillon, a CVS spokesperson, said the collaboration is still in the early stages. But she said new services could include electrocardiograms and other diagnostic tests, management of chronic diseases, and an on-call physician. She expected the commission to issue findings near the end of the year and MinuteClinic to begin offering primary care in early 2026. 'As one of the nation's largest employers of ... nurse practitioners and physician associates, MinuteClinic is well-positioned to address gaps in comprehensive primary care access,' she said in a statement. 'Many of the patients we see at MinuteClinic either don't have a primary care provider or have not seen one in years.' Jessica Pastore, an MGB spokesperson, said the shortage in primary care physicians has resulted in 'unprecedented volume' for doctors, prompting the health system to look for solutions. Too often, patients without primary care providers end up in hospital emergency rooms, the most expensive places to receive care. 'This affiliation will expand access across the Commonwealth with a particular focus on regions with demonstrated shortages,' she said in a statement. A collaboration with CVS would bring the drug store chain's MinuteClinics into MassGeneral Brigham's network of providers. Pastore said the venture wouldn't require any financial investment by MGB. CVS would join MGB's 'accountable care organization,' or ACO. The ACO contracts with government or commercial insurers to provide integrated care, earning bonuses for meeting cost and quality targets or getting penalized if it doesn't. The MinuteClinic sites would be owned, operated, and paid for by CVS, she said. Advertisement Although Massachusetts has some of the most sought-after doctors in the world, primary care is badly broken for patients and physicians, according to a report issued in January by the commission. More patients are reporting difficulty finding doctors. Physicians are struggling with overwhelming workloads. The corps of primary care providers is aging, and the medical education system isn't producing enough doctors to replace them. Pay and work-life balance are reasons why many young doctors opt not to pursue careers in primary care. Primary care physicians typically earn less than specialists and often work longer hours, reviewing lab results, fielding questions from patients on the phone or on portals, and dealing with insurers. Although the shortage in primary care doctors is a nationwide problem, it is particularly acute in Massachusetts. A from Atlanta to Washington, D.C., at 69 days. David E. Williams, president of the Boston consulting firm Health Business Group, said both CVS Health and MGB likely see different benefits to the partnership. MinuteClinic, as part of MGB, would gain cachet. 'They're not just a drug store clinic,' Williams said. MGB, meanwhile, would benefit from MinuteClinic referring patients to the health system for other treatments and services, Williams said. MGB, however, hasn't discussed the collaboration with its primary care physicians, local chapter of SEIU's Doctors Council. He added that he welcomes any effort to make primary care more accessible. Advertisement 'What I would want to see is more transparency around how the partnership is going to impact primary care access across the whole MGB system, including in Eastern Massachusetts,' Barnett said. 'We know there are lots of unaddressed problems in the MGB system as it currently stands. 'They're proposing expanding the network with a completely new model.' MGB got feedback from clinicians in the fall of 2023 'about the need for new solutions and exploring new models of care,' said Pastore, the MGB spokesperson. In May of this year, Dr. Anne Klibanski, chief executive of MGB, also pledged to Primary care doctors from Brigham and Massachusetts General Hospital picket outside the Brigham in 2024. Among the many questions left unanswered by the potential MGB-CVS collaboration is whether patients who need primary care would be satisfied receiving it from less highly trained nurse practitioners or physician associates instead of physicians. Among the many questions left unanswered by the potential MGB-CVS collaboration is whether patients who need primary care would be satisfied receiving it from nurse practitioners or physician associates instead of physicians. David L. Ryan/Globe Staff Among the many questions left unanswered by the potential MGB-CVS collaboration is whether patients who need primary care would be satisfied receiving it from less highly trained nurse practitioners or physician associates instead of physicians. After completing college, doctors typically attend medical school for four years and then spend three to seven years in residency, depending on the specialty. Nurse practitioners typically attend college for four years to earn a nursing degree and spend two to three years in an advanced practitioner program, depending on whether they earn a master's or a doctoral degree. Advertisement CVS, headquartered in Woonsocket, R.I., is hardly the only retail giant that has sought to get into primary care. In recent years, Walgreens and Walmart set up scores of clinics in their stores, with the goal of making health care as convenient as picking up prescription drugs or groceries. But the retail giants soon scrapped or scaled back their efforts, which proved financially challenging. 'It hasn't been too successful,' Williams, the health care consultant, said of the business model. 'The theory is good, but in practice, people don't want to get their medical care the same place they're picking up dog food.' Jonathan Saltzman can be reached at
