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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.
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