Analysts on Wall Street project that CVS Health (CVS) will announce quarterly earnings of $1.36 per share in its forthcoming report, representing an increase of 24.8% year over year. Revenues are projected to reach $98.29 billion, increasing 3% from the same quarter last year.
The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
In light of this perspective, let's dive into the average estimates of certain CVS Health metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenue- Pharmacy & Consumer Wellness Segment' should arrive at $35.43 billion. The estimate points to a change of +9.3% from the year-ago quarter.
Analysts predict that the 'Revenue- Health Care Benefits' will reach $34.82 billion. The estimate points to a change of +5.5% from the year-ago quarter.
Analysts' assessment points toward 'Net revenue- Health Services segment' reaching $45.64 billion. The estimate suggests a change of +3.4% year over year.
The consensus estimate for 'Revenue- Pharmacy & Consumer Wellness Segment- Other' stands at $597.43 million. The estimate indicates a year-over-year change of +6.5%.
The collective assessment of analysts points to an estimated 'Medical benefit ratio (MBR)' of 92.3%. Compared to the present estimate, the company reported 95.2% in the same quarter last year.
According to the collective judgment of analysts, 'Medical membership - Total' should come in at 26.58 million. Compared to the present estimate, the company reported 27.15 million in the same quarter last year.
Analysts forecast 'Medical membership - Insured - Medicare Supplement' to reach $1.23 billion. The estimate is in contrast to the year-ago figure of $1.29 billion.
It is projected by analysts that the 'Pharmacy claims processed' will reach 481.18 million. The estimate is in contrast to the year-ago figure of 484.10 million.
The consensus among analysts is that 'Medical membership - Commercial - Total' will reach 18.75 million. The estimate is in contrast to the year-ago figure of 18.91 million.
Analysts expect 'Medical membership - Medicare Advantage - Total' to come in at 4.22 million. The estimate compares to the year-ago value of 4.44 million.
The average prediction of analysts places 'Medical membership - Medicaid - Total' at $2.39 billion. The estimate compares to the year-ago value of $2.51 billion.
The combined assessment of analysts suggests that 'Medical membership - Insured - Commercial' will likely reach 3.56 million. The estimate compares to the year-ago value of 4.75 million.
View all Key Company Metrics for CVS Health here>>>
Over the past month, shares of CVS Health have returned +8.7% versus the Zacks S&P 500 composite's +1.3% change. Currently, CVS carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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CVS Health Corporation (CVS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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