CVS Stock Rises on Better-than-Feared Results, Outlook

Dow Jones

13 Feb

By Dean Seal

CVS Health stock is on track for its best day since October 2008 after the company turned in fourth-quarter results and 2025 guidance that weren't as bad as investors may have expected.

The stock is up 15% at $63.33 in early trading, building into a 41% year-to-date gain. The solid start of the year came after hefty declines in 2024. This time a year ago, the stock was trading at around $77.29.

The healthcare heavyweight has been managing higher-than-expected medical costs in its Aetna insurance unit that weighed on results last year. But adjusted earnings of $1.19 a share in the last three months of 2024 cleared analyst forecasts for 91 cents a share, according to FactSet.

The company also reported Wednesday that revenue rose 4% to $97.71 billion, beating analyst targets for $97.09 billion. The top line was boosted by growth in CVS's healthcare benefits and pharmacy segments, more than offsetting a decline in its health service segment.

CVS is guiding for adjusted earnings of $5.75 to $6 a share for 2025, in line with the consensus estimate of analysts polled by Factset.

Both the results and the guidance were better than feared, Mizuho analysts said in a research note on Wednesday, and management sounded positive on the company's earnings call.

"We continue to believe 2025 is a transition year that should set the company on a multi-year path to a recovery in margins in the health insurance business," the analysts said.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 12, 2025 11:02 ET (16:02 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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The top line was boosted by growth in CVS's healthcare benefits and pharmacy segments, more than offsetting a decline in its health service segment. \n</p>\n<p>\n  CVS is guiding for adjusted earnings of $5.75 to $6 a share for 2025, in line with the consensus estimate of analysts polled by Factset. \n</p>\n<p>\n  Both the results and the guidance were better than feared, Mizuho analysts said in a research note on Wednesday, and management sounded positive on the company's earnings call. \n</p>\n<p>\n  \"We continue to believe 2025 is a transition year that should set the company on a multi-year path to a recovery in margins in the health insurance business,\" the analysts said. \n</p>\n<pre>\n \n</pre>\n<p>\n  Write to Dean Seal at dean.seal@wsj.com \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  February 12, 2025 11:02 ET (16:02 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0208291251.USD","symbol_name":"FRANKLIN MUTUAL U.S. VALUE \"A\" (USD) INC","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2511301593","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2511301593","pubTimestamp":1739376120,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"CVS Health stock is on track for its best day since October 2008 after the company turned in fourth-quarter results and 2025 guidance that weren't as bad as investors may have expected.The stock is up 15% at $63.33 in early trading, building into a 41% year-to-date gain. 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The solid start of the year came after hefty declines in 2024. This time a year ago, the stock was trading at around $77.29. \n\n\n  The healthcare heavyweight has been managing higher-than-expected medical costs in its Aetna insurance unit that weighed on results last year. But adjusted earnings of $1.19 a share in the last three months of 2024 cleared analyst forecasts for 91 cents a share, according to FactSet. \n\n\n  The company also reported Wednesday that revenue rose 4% to $97.71 billion, beating analyst targets for $97.09 billion. The top line was boosted by growth in CVS's healthcare benefits and pharmacy segments, more than offsetting a decline in its health service segment. \n\n\n  CVS is guiding for adjusted earnings of $5.75 to $6 a share for 2025, in line with the consensus estimate of analysts polled by Factset. \n\n\n  Both the results and the guidance were better than feared, Mizuho analysts said in a research note on Wednesday, and management sounded positive on the company's earnings call. \n\n\n  \"We continue to believe 2025 is a transition year that should set the company on a multi-year path to a recovery in margins in the health insurance business,\" the analysts said. \n\n\n \n\n\n  Write to Dean Seal at dean.seal@wsj.com \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  February 12, 2025 11:02 ET (16:02 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1}}}