The first quarter did not live up to expectations at CVS Health, with earnings well short of Wall Street estimates and front-end comparable sales down.
A Yahoo Finance-published analyst consensus estimate called for adjusted diluted earnings of $1.69 and revenues of $89.21 billion.
Net revenues were $88.44 billion versus $85.28 billion in the year-prior quarter, the company reported. Operating income was $2.27 billion versus $3.45 billion in the year-earlier period, while adjusted operating income was $2.96 billion versus $4.37 billion.
In the Pharmacy and Consumer Wellness segment, including store operations, total revenues were $28.73 billion versus $27.92 billion in the year-past quarter. Comparable sales increased by 5.3%, but front store comps, including general merchandise, decreased by 2.2%. Adjusted operating income was $1.18 billion versus $1.13 billion in the 2023 period.
In announcing the financial results, Karen Lynch, CVS Health president and CEO, said, “The current environment does not diminish our opportunities, enthusiasm or the long-term earnings power of our company. We are confident we have a pathway to address our near-term Medicare Advantage challenges. We remain committed to our strategy and believe that we have the right assets in place to deliver value to our customers, members, patients, and shareholders.”
