Summary
CVS Health Corporation's third-quarter 2022 report shows a significant increase in total revenues, up 10.0% year-over-year to $81.2 billion, driven by strong performance across all segments, particularly in 'Products' and 'Premiums'. However, the company reported a substantial operating loss of $3.9 billion for the quarter, a significant shift from the prior year's operating income. This loss was primarily attributable to a $5.2 billion charge related to opioid litigation settlements and a $2.5 billion loss on assets held for sale for its long-term care business. Despite these charges, the company's adjusted operating income, which excludes these one-time items and other adjustments, increased to $4.2 billion, reflecting underlying operational strength in its Health Care Benefits and Pharmacy Services segments. For the first nine months of 2022, total revenues also grew by 10.7% to $238.6 billion. The company generated net income attributable to CVS Health of $1.8 billion, a notable decrease from $6.6 billion in the same period last year, largely due to the aforementioned opioid litigation charges and the loss on assets held for sale. The company's cash flow from operations saw a significant increase of $3.9 billion year-over-year, ending the quarter with a healthy cash balance of $17.2 billion. Investors should note the ongoing integration of the proposed Signify Health acquisition, expected to close in the first half of 2023, which is subject to regulatory approval.
Financial Highlights
55 data points| Revenue | $81.16B |
| Cost of Revenue | $50.37B |
| Gross Profit | $30.79B |
| Operating Expenses | $85.08B |
| Operating Income | -$3.92B |
| Interest Expense | $566.00M |
| Net Income | -$3.41B |
| EPS (Basic) | $-2.59 |
| EPS (Diluted) | $-2.59 |
| Shares Outstanding (Basic) | 1.31B |
| Shares Outstanding (Diluted) | 1.31B |
Key Highlights
- 1Total revenues increased 10.0% to $81.2 billion in Q3 2022 compared to the prior year, driven by broad-based segment growth.
- 2Reported an operating loss of $3.9 billion in Q3 2022, significantly down from an operating income of $3.1 billion in Q3 2021, primarily due to $5.2 billion in opioid litigation charges and a $2.5 billion loss on assets held for sale.
- 3Adjusted operating income, excluding specific charges, increased by 3.7% to $4.2 billion in Q3 2022, indicating strong underlying operational performance.
- 4Net income attributable to CVS Health decreased to $1.8 billion for the nine months ended September 30, 2022, from $6.6 billion in the prior year, largely due to significant litigation and asset impairment charges.
- 5Net cash provided by operating activities increased by 27.1% to $18.1 billion for the nine months ended September 30, 2022.
- 6The company ended the quarter with $17.2 billion in cash and cash equivalents.
- 7CVS Health entered into a definitive agreement to acquire Signify Health for approximately $8 billion, expected to close in the first half of 2023, subject to regulatory approval.