CVS Health Lowers 2024 Profit Forecast Amid Rising Medical Costs

Despite exceeding fourth-quarter expectations, CVS Health revises its 2024 earnings outlook due to increased insurance payouts and medical costs.

CVS Health reported better-than-expected fourth-quarter earnings but lowered its 2024 profit outlook due to rising medical costs.
The company's adjusted profit was $2.12 per share, with revenue growing 11.9% year-over-year to $93.8 billion.
Increased insurance payouts and higher medical benefit ratios are attributed to more Americans undergoing elective procedures post-COVID.
CVS's health services business saw significant growth, driven by pharmacy drug mix, specialty pharmacy growth, brand inflation, and recent acquisitions.
The company is cautious about 2024, adjusting its earnings forecast to at least $8.30 per share, down from a previous forecast of at least $8.50 per share.