CVS Health lowers profit forecast due to acquisition expenses.
CVS Health Corp Cuts Full-Year Profit Forecast
CVS Health Corp has cut its full-year profit forecast due to costs related to its recent acquisitions of Signify Health and Oak Street Health. This move comes as the healthcare company, like many others, expands beyond managing health and pharmacies to adjust to decreasing revenue from COVID-related services.
The company’s profits had also benefited from lower medical costs at Aetna during the pandemic. However, CVS now expects 2023 adjusted earnings per share of between $8.50 and $8.70, compared with its previous forecast of between $8.70 to $8.90.
In the first quarter, CVS posted an adjusted profit of $2.20 per share, which was above analysts’ average estimate of $2.09 per share, according to Refinitiv data.
Despite the cut in profit forecast, CVS remains a strong player in the healthcare industry and is constantly adapting to meet the changing needs of its customers.
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