CVS Health (CVS) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Zacks
12 Feb

For the quarter ended December 2024, CVS Health (CVS) reported revenue of $97.71 billion, up 4.2% over the same period last year. EPS came in at $1.19, compared to $2.12 in the year-ago quarter.

The reported revenue represents a surprise of +0.67% over the Zacks Consensus Estimate of $97.06 billion. With the consensus EPS estimate being $0.89, the EPS surprise was +33.71%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how CVS Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Medical benefit ratio (MBR): 94.8% versus 95.6% estimated by six analysts on average.
  • Medical membership - Total: 27.1 million versus 27.15 million estimated by five analysts on average.
  • Medical membership - Insured - Medicare Supplement: $1.28 billion versus $1.30 billion estimated by four analysts on average.
  • Medical membership - ASC - Commercial: 14.16 million versus 14.15 million estimated by four analysts on average.
  • Revenue- Pharmacy & Consumer Wellness Segment: $33.51 billion versus $33.27 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +7.5% change.
  • Revenue- Health Care Benefits: $32.96 billion versus the six-analyst average estimate of $32.92 billion. The reported number represents a year-over-year change of +23.3%.
  • Net revenue- Health Services segment: $47.02 billion versus $44.42 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -4.3% change.
  • Revenue- Pharmacy & Consumer Wellness Segment- Other: $615 million versus $607.79 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.
  • Revenue- Health Care Benefits Segment- Services: $1.66 billion versus the four-analyst average estimate of $1.65 billion. The reported number represents a year-over-year change of +14.3%.
  • Revenue- Health Care Benefits Segment- Net investment income: $397 million compared to the $291.54 million average estimate based on four analysts. The reported number represents a change of +90% year over year.
  • Revenue- Health Care Benefits Segment- Premiums: $30.90 billion versus $31.01 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +23.3% change.
  • Revenue- Pharmacy & Consumer Wellness Segment- Front store: $5.68 billion compared to the $5.94 billion average estimate based on four analysts. The reported number represents a change of -3.2% year over year.
View all Key Company Metrics for CVS Health here>>>

Shares of CVS Health have returned +6.7% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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