Summary
CVS Health Corporation (CVS) announced an update regarding its previously disclosed acquisition of Oak Street Health, Inc. The company now anticipates closing this acquisition in the first half of 2023. This comes shortly after the successful closure of the Signify Health, Inc. acquisition on March 29, 2023. Investors should note that the financial implications of both these significant transactions will be reflected in CVS Health's upcoming first quarter 2023 earnings guidance, expected on May 3, 2023. The updated guidance will incorporate year-to-date performance, the positive financial impact from Signify Health, the expected dilutive effects of the Oak Street Health deal, and the increased interest expenses tied to the financing of both acquisitions. While the company has not revised its long-term adjusted earnings per share (EPS) targets, it's important for investors to understand that the financial effects of both Signify Health and Oak Street Health were previously factored into the 2024 and 2025 EPS projections.
Key Highlights
- 1CVS Health expects to close the Oak Street Health acquisition in the first half of 2023.
- 2The acquisition of Signify Health, Inc. was successfully completed on March 29, 2023.
- 3Full-year 2023 guidance will be updated on the Q1 2023 earnings call (May 3, 2023).
- 4The updated guidance will reflect the accretive impact of Signify Health and the dilutive impact of Oak Street Health.
- 5Associated interest expense impacts from financing both acquisitions will be included in the updated guidance.
- 6Long-term adjusted EPS targets for 2024 and 2025 remain unchanged, with both acquisitions' impacts previously assumed.