{"id":6750,"date":"2025-02-12T15:01:16","date_gmt":"2025-02-12T15:01:16","guid":{"rendered":"https:\/\/stoxpo.com\/?p=6750"},"modified":"2025-02-12T15:01:17","modified_gmt":"2025-02-12T15:01:17","slug":"cvs-surges-8-after-beating-q4-earnings-expectations","status":"publish","type":"post","link":"https:\/\/stoxpo.com\/index.php\/2025\/02\/12\/cvs-surges-8-after-beating-q4-earnings-expectations\/","title":{"rendered":"CVS Surges 8% After Beating Q4 Earnings Expectations"},"content":{"rendered":"\n<h4 class=\"wp-block-heading has-medium-font-size\">Retail and Pharmacy Segments Show Strength Amid Industry Challenges<\/h4>\n\n\n\n<p>CVS Health (CVS) <strong>beat Wall Street expectations<\/strong> with its fourth-quarter and full-year <strong>2024 earnings<\/strong>, sending its stock up nearly <strong>8% in pre-market trading<\/strong> on Wednesday.<\/p>\n\n\n\n<p>The company reported <strong>full-year revenue of $372.8 billion<\/strong>, while <strong>Q4 revenue reached $97.7 billion<\/strong>, slightly above analyst estimates of <strong>$96.8 billion<\/strong>. Despite <strong>ongoing headwinds<\/strong> in its <strong>health care benefits segment<\/strong>, particularly in <strong>Medicare and Medicaid<\/strong>, <strong>strong retail and pharmaceutical sales<\/strong> helped offset the decline.<\/p>\n\n\n\n<p>CVS reported a <strong>medical loss ratio (MLR) of 92.5%<\/strong>, a <strong>notable improvement from Q3\u2019s record-high 95.2%<\/strong>. MLR measures the percentage of premium dollars spent on claims, with <strong>lower values being more favorable<\/strong> for insurers.<\/p>\n\n\n\n<p>Even with <strong>a new White House administration<\/strong>, CVS remains exposed to <strong>potential regulatory changes<\/strong> that could impact <strong>pharmacy benefit managers (PBMs)<\/strong>, a key part of its business. As <strong>the largest PBM in the U.S.<\/strong>, CVS faces ongoing scrutiny over drug pricing and reimbursement models.<\/p>\n\n\n\n<p>The company <strong>concluded a turbulent year<\/strong> with <strong>David Joyner stepping in as CEO<\/strong>. In <strong>2024, CVS grappled with activist investors<\/strong>, considered <strong>breaking up the company<\/strong>, and saw its <strong>profit decline by 38%<\/strong> to <strong>$8.5 billion<\/strong>, compared to <strong>$13.7 billion in 2023<\/strong>. Its stock also fell <strong>40% last year<\/strong>.<\/p>\n\n\n\n<p>For <strong>2025 guidance<\/strong>, CVS projected <strong>adjusted EPS between $5.75 and $6<\/strong>, but <strong>did not provide a revenue forecast<\/strong>.<\/p>\n\n\n\n<p>\u201cWe have continued to see <strong>growth in key areas<\/strong>, including <strong>Pharmacy and Consumer Wellness<\/strong>, while navigating industry-wide challenges in <strong>Health Care Benefits<\/strong>,\u201d Joyner stated.<\/p>\n\n\n\n<p>Investors welcomed <strong>the improved financial outlook<\/strong>, driving the <strong>stock higher<\/strong> as CVS aims to <strong>stabilize and regain investor confidence<\/strong> in 2025.<\/p>\n\n\n\n<p>You might like this article:<a href=\"https:\/\/stoxpo.com\/index.php\/2025\/02\/12\/lattice-semiconductor-shares-surge-after-strong-q1-outlook\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Lattice Semiconductor Shares Surge After Strong Q1 Outlook<\/mark><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail and Pharmacy Segments Show Strength Amid Industry Challenges CVS Health (CVS) beat Wall Street expectations with its fourth-quarter and full-year 2024 earnings, sending its stock up nearly 8% in pre-market trading on Wednesday. The company reported full-year revenue of $372.8 billion, while Q4 revenue reached $97.7 billion, slightly above analyst estimates of $96.8 billion. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6752,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"8","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar-narrow","sidebar":"author","second_sidebar":"single-right","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"0","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"0","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"0","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1","show_author_box":"0","show_post_related":"1","show_inline_post_related":"0"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_social_meta":{"fb_title":"","fb_description":"","fb_image":"","twitter_title":"","twitter_description":"","twitter_image":""},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"jnews_post_split":{"enable_post_split":"0","post_split":[{"template":"1","tag":"h2","numbering":"asc","mode":"normal","first":"0","enable_toc":"0","toc_type":"normal"}]}},"categories":[335,361],"tags":[645,420,421,416,418],"coauthors":[454],"_links":{"self":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/6750"}],"collection":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/comments?post=6750"}],"version-history":[{"count":1,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/6750\/revisions"}],"predecessor-version":[{"id":6753,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/posts\/6750\/revisions\/6753"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media\/6752"}],"wp:attachment":[{"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/media?parent=6750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/categories?post=6750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/tags?post=6750"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/stoxpo.com\/index.php\/wp-json\/wp\/v2\/coauthors?post=6750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}