CVS Health beat first-quarter expectations as revenue grew from all parts of its business, but the health care giant chopped 2023 earnings projections after closing a pair of multi-billion dollar deals that will push it deeper into providing care.
The drugstore chain, pharmacy benefit manager and insurer said Wednesday that it now expects adjusted earnings of $8.50 to $8.70 per share for the year. That’s down 20 cents on both ends of the range from a forecast it debuted in November and reaffirmed in February.
It's also short of the $8.76 Wall Street had been projecting, according to a poll of analysts by FactSet.
CVS Health said Tuesday that it completed a roughly $10.6 billion acquisition of primary care provider Oak Health that it had announced in February. It also closed an approximately $8 billion deal to buy home health care provider Signify Health in March.
CVS Health leaders have said that home health and primary care are two strategic areas where the company planned to deploy capita and grow.
CVS operates one of the nation’s largest drugstore chains with nearly 10,000 retail locations. It runs prescription drug plans for big clients like insurers and employers through a large pharmacy benefit management business.
It also provides health insurance for more than 24 million people through its Aetna arm.
In the third quarter, adjusted earnings totaled $2.20 per share, on $85.3 billion in total revenue.
Analysts predicted earnings of $2.09 per share on $80.79 billion in revenue.
Company shares slipped less than 1% before the opening bell Wednesday.