{"id":43194,"date":"2023-08-01T17:03:38","date_gmt":"2023-08-01T21:03:38","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/higher-costs-to-weigh-on-cvs-healths-q2\/"},"modified":"2023-08-01T17:03:41","modified_gmt":"2023-08-01T21:03:41","slug":"higher-costs-to-weigh-on-cvs-healths-q2","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=43194","title":{"rendered":"Higher Costs To Weigh On CVS Health\u2019s Q2?"},"content":{"rendered":"
\n

CVS Health (NYSE: CVS)<\/strong> will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below the consensus estimate of $86.5 billion. This would mark year-over-year growth of about 7%. Earnings will likely come in at about $2.10 on a per-share and adjusted basis, nearly matching the $2.11 consensus estimate. See our interactive dashboard analysis on <\/strong>CVS Health Earnings Preview<\/strong> for more details on how the company\u2019s revenues and earnings will likely result for the quarter. So, what are some of the trends that are likely to drive CVS
\n CVS
\n <\/fbs-ticker> Health\u2019s results?<\/p>\n

The company will likely continue to benefit from the steady growth of its healthcare and pharmacy services businesses. The increased prescription volume and drug price inflation will likely drive the top-line expansion. However, higher costs, primarily benefits costs, probably weighed on its overall performance. Looking at Q1 2023, CVS Health\u2019s revenues<\/strong> were up 11%, led by about a 12% rise in Health Care Benefits and Health Services segments and an 8% growth in the Pharmacy & Consumer Wellness segment.<\/p>\n

Looking at the bottom line, CVS Health reported $2.20 earnings per share on an adjusted basis in Q1, compared to a $2.30 figure in the prior-year quarter. This can be attributed to a 57 bps decline in the company\u2019s operating margin of 4.0% due to the write-down of the Company\u2019s Omnicare long-term care business and an overall increase in costs, mainly for the Pharmacy & Consumer Health segment. Our CVS Health\u2019s Operating Income Comparison<\/strong> dashboard has more details.<\/p>\n

Looking at CVS\u2019 stock price, we believe that it is undervalued. We estimate CVS Health\u2019s valuation<\/strong> to be $103 per share, about 38% above its current price of $75. At its current levels, CVS is trading at less than 9x its forward expected earnings of $8.58 on a per-share and adjusted basis for the full-year 2023, compared to its last two-year average of over 11x, implying that CVS is undervalued. The company has guided for adjusted EPS to be in the range of $8.50 to $8.70 for the full-year 2023.<\/p>\n

<\/fbs-ad><\/p>\n

While CVS stock looks undervalued, it is helpful to see how CVS Health\u2019s Peers<\/strong> fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons<\/strong>.<\/strong><\/p>\n

Invest with Trefis <\/strong>Market Beating Portfolios<\/strong><\/p>\n

See all Trefis <\/strong>Price Estimates<\/strong><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below the consensus estimate of $86.5 billion. This would mark year-over-year growth of about 7%. Earnings will likely come in at about $2.10 on a per-share and adjusted basis, […]<\/p>\n","protected":false},"author":1,"featured_media":43195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-43194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"\nHigher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=43194\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Higher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=43194\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-01T21:03:38+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-01T21:03:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1690923819_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=43194#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=43194\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Higher Costs To Weigh On CVS Health\u2019s Q2?\",\"datePublished\":\"2023-08-01T21:03:38+00:00\",\"dateModified\":\"2023-08-01T21:03:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=43194\"},\"wordCount\":393,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=43194#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=43194\",\"url\":\"https:\/\/ifintechworld.com\/?p=43194\",\"name\":\"Higher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-01T21:03:38+00:00\",\"dateModified\":\"2023-08-01T21:03:41+00:00\",\"description\":\"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=43194#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=43194\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=43194#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Higher Costs To Weigh On CVS Health\u2019s Q2?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Higher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld","description":"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=43194","og_locale":"en_US","og_type":"article","og_title":"Higher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld","og_description":"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below","og_url":"https:\/\/ifintechworld.com\/?p=43194","og_site_name":"iFintechWorld","article_published_time":"2023-08-01T21:03:38+00:00","article_modified_time":"2023-08-01T21:03:41+00:00","og_image":[{"width":1200,"height":800,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/1690923819_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=43194#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=43194"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Higher Costs To Weigh On CVS Health\u2019s Q2?","datePublished":"2023-08-01T21:03:38+00:00","dateModified":"2023-08-01T21:03:41+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=43194"},"wordCount":393,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=43194#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=43194","url":"https:\/\/ifintechworld.com\/?p=43194","name":"Higher Costs To Weigh On CVS Health\u2019s Q2? | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-01T21:03:38+00:00","dateModified":"2023-08-01T21:03:41+00:00","description":"CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company\u2019s revenues to come in at $86.0 billion, slightly below","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=43194#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=43194"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=43194#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Higher Costs To Weigh On CVS Health\u2019s Q2?"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/43194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43194"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/43194\/revisions"}],"predecessor-version":[{"id":43196,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/43194\/revisions\/43196"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/43195"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}