#Analysts #Bullish #CVS #Ahead #Earnings #Stock #Drop
Key takeaways
- CVS Health is scheduled to report earnings Wednesday morning after two disappointing quarters to start 2024.
- Shares are down about 30% since the start of 2024, but analysts largely believe CVS will be able to recoup some of its stock losses going forward.
- Last month, the pharmacy chain and health care provider faced reports that it was considering spinning off its business and hiring a new CEO.
CVS Health (CVS) will report third-quarter earnings before the market opens on Wednesday after the pharmacy and health care provider had a rocky October that included a CEO change and layoffs, among other cost-cutting steps.
Despite being down nearly 30% year-to-date, the 13 analysts tracked by Visible Alpha remain largely bullish on CVS stock, with nine “buy” ratings and four “hold” ratings. However, the average price target of $68.69 suggests analysts expect CVS to recover some — but not all — of its losses from the start of 2024. The stock closed Monday at $54.65, down 2%.
Revenue is expected to rise to $93.02 billion for the quarter, an increase of about 3.6% year over year. But net income is expected to fall more than 40% to $1.29 billion, or $1.05 per share, according to estimates compiled by Visible Alpha.
Earnings track CEO swap, reports of possible breakup
CVS reported its latest earnings after a tumultuous October, which began with reports that a spin-off of its namesake pharmacy and health insurance provider Aetna was under consideration after its earnings in the first two quarters of 2024 were disappointing and it repeatedly cut earnings forecasts.
Weeks after it was reported that the company met with hedge fund Glenview Capital Management to discuss potential changes to its operations, CVS said on October 18 that company veteran David Joyner would take over as chief executive officer (CEO). The company at the time also issued a preliminary forecast for third-quarter earnings per share (EPS) of 3 cents to 8 cents and said it would provide new full-year guidance on an earnings call on Wednesday.
CVS shares are down 19% since mid-October.
#Analysts #Bullish #CVS #Ahead #Earnings #Stock #Drop
