In its upcoming report, CVS Health (CVS) is predicted by Wall Street analysts to post quarterly earnings of $0.99 per share, reflecting a decline of 16.8% compared to the same period last year. Revenues are forecasted to be $103.44 billion, representing a year-over-year increase of 5.9%.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some CVS Health metrics that Wall Street analysts commonly model and monitor.
Analysts forecast 'Net revenue- Health Services segment' to reach $50.40 billion. The estimate suggests a change of +7.2% year over year.
It is projected by analysts that the 'Revenue- Pharmacy & Consumer Wellness Segment' will reach $36.80 billion. The estimate points to a change of +9.8% from the year-ago quarter.
According to the collective judgment of analysts, 'Revenue- Health Care Benefits' should come in at $35.17 billion. The estimate suggests a change of +6.7% year over year.
The collective assessment of analysts points to an estimated 'Revenue- Health Care Benefits Segment- Net investment income' of $418.54 million. The estimate suggests a change of +5.4% year over year.
The consensus estimate for 'Medical benefit ratio (MBR)' stands at 94.7%. The estimate compares to the year-ago value of 94.8%.
The consensus among analysts is that 'Medical membership - Total' will reach 26.54 million. Compared to the current estimate, the company reported 27.10 million in the same quarter of the previous year.
The average prediction of analysts places 'Medical membership - Insured - Medicare Supplement' at $1.22 billion. Compared to the present estimate, the company reported $1.28 billion in the same quarter last year.
Analysts expect 'Medical membership - Medicaid - Total' to come in at $2.38 billion. The estimate is in contrast to the year-ago figure of $2.52 billion.
Based on the collective assessment of analysts, 'Medical membership - ASC - Commercial' should arrive at 15.24 million. The estimate is in contrast to the year-ago figure of 14.16 million.
The combined assessment of analysts suggests that 'Medical membership - Commercial - Total' will likely reach 18.73 million. The estimate is in contrast to the year-ago figure of 18.85 million.
Analysts' assessment points toward 'Medical membership - Medicare Advantage - Total' reaching 4.25 million. The estimate is in contrast to the year-ago figure of 4.45 million.
Analysts predict that the 'Medical membership - Insured - Commercial' will reach 3.48 million. Compared to the present estimate, the company reported 4.69 million in the same quarter last year.
View all Key Company Metrics for CVS Health here>>>
Over the past month, CVS Health shares have recorded returns of -5.7% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #3 (Hold), CVS will likely exhibit a performance that aligns with the overall market in the upcoming period. 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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