Analysts on Wall Street project that CVS Health (CVS) will announce quarterly earnings of $1.67 per share in its forthcoming report, representing an increase of 27.5% year over year. Revenues are projected to reach $92.95 billion, increasing 5.1% from the same quarter last year.
The current level reflects a downward revision of 1.5% 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 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.
Bearing this in mind, let's now explore the average estimates of specific CVS Health metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Revenue- Health Care Benefits' at $33.66 billion. The estimate suggests a change of +4.4% year over year.
The combined assessment of analysts suggests that 'Revenue- Pharmacy & Consumer Wellness Segment' will likely reach $31.20 billion. The estimate indicates a year-over-year change of +8.6%.
The consensus among analysts is that 'Net revenue- Health Services segment' will reach $43.36 billion. The estimate suggests a change of +7.6% year over year.
Analysts' assessment points toward 'Revenue- Pharmacy & Consumer Wellness Segment- Front store' reaching $5.43 billion. The estimate indicates a change of +1.2% from the prior-year quarter.
The consensus estimate for 'Medical benefit ratio (MBR)' stands at 88.6%. Compared to the present estimate, the company reported 90.4% in the same quarter last year.
According to the collective judgment of analysts, 'Medical membership - Total' should come in at 25.99 million. Compared to the present estimate, the company reported 26.77 million in the same quarter last year.
Based on the collective assessment of analysts, 'Medical membership - Insured - Medicare Supplement' should arrive at $1.26 billion. Compared to the present estimate, the company reported $1.30 billion in the same quarter last year.
Analysts predict that the 'Medical membership - ASC - Commercial' will reach 14.3 million. The estimate is in contrast to the year-ago figure of 14.11 million.
The collective assessment of analysts points to an estimated 'Medical membership - Insured - Commercial' of 3.94 million. Compared to the present estimate, the company reported 4.74 million in the same quarter last year.
Analysts expect 'Pharmacy claims processed' to come in at 467.42 million. Compared to the present estimate, the company reported 462.9 million in the same quarter last year.
Analysts forecast 'Medical membership - Commercial - Total' to reach 18.23 million. The estimate is in contrast to the year-ago figure of 18.85 million.
It is projected by analysts that the 'Medicare Prescription Drug Plan (standalone)' will reach 4.53 million. Compared to the present estimate, the company reported 4.95 million in the same quarter last year.
View all Key Company Metrics for CVS Health here>>>
Shares of CVS Health have demonstrated returns of -2.7% over the past month compared to the Zacks S&P 500 composite's -4.3% change. With a Zacks Rank #3 (Hold), CVS is expected to mirror the overall market performance 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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