An earlier version of this article had a typo in the 2024 revenue guidance. It has been corrected.
CVS Health Inc.’s stock
CVS,
rose 3% premarket Tuesday, after the drug-store chain backed guidance for 2023 and set guidance for 2024 with revenue that’s comfortably above consensus. The company said it expects 2024 adjusted EPS of at least 8.50 on revenue of at least $366.0 billion. The FactSet consensus is for EPS of $8.51 and revenue of $344.5 billion. The company still expects 2023 adjusted EPS of $8.50 to $8.70 on revenue of $351.5 billion to $357.3 billion. It offered the outlook in a statement released ahead of an investor day. The Woonsocket, R.I.-based company is introducing CVS CostVantage, a new reimbursement model that aims to improve transparency. “CVS CostVantage will define the drug cost and related reimbursement with contracted pharmacy benefit managers (PBMs) and payors, using a transparent formula built on the cost of the drug, a set markup, and a fee that reflects the care and value of pharmacy services,” the company said. It’s further launching CVS Caremark TrueCos as a new pricing program for prescription drugs that will offer visibility into admin fees. The company’s Health Services segment will be rebranded as CVS Healthspire starting this month. CVS Health is also raising its quarterly dividend by 10% to 66.5 cents vs. 60.5 cents previously. The new dividend is payable Feb. 1 to holders of record as of Jan. 22. The stock is down 26.5% in the year to date, while the S&P 500
SPX,
has gained 19%.
