Earnings To Watch: CVS Health (CVS) Reports Q3 Results Tomorrow

Diversified healthcare company CVS Health (NYSE:CVS) will be reporting results this Wednesday before market hours. Here’s what investors should know.

CVS Health beat analysts’ revenue expectations by 5.1% last quarter, reporting revenues of $98.92 billion, up 8.4% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ revenue estimates.

Is CVS Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting CVS Health’s revenue to grow 3.5% year on year to $98.76 billion, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CVS Health has missed Wall Street’s revenue estimates twice over the last two years.

Looking at CVS Health’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elevance Health delivered year-on-year revenue growth of 11%, meeting analysts’ expectations, and Molina Healthcare reported revenues up 11%, topping estimates by 4.7%. Elevance Health traded down 2.5% following the results while Molina Healthcare was also down 17.3%.

Read our full analysis of Elevance Health’s results here and Molina Healthcare’s results here.

There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7% on average over the last month. CVS Health is up 9.2% during the same time and is heading into earnings with an average analyst price target of $86.20 (compared to the current share price of $82.50).

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