Summary
CVS Health Corporation (CVS) has filed an 8-K report on May 31, 2023, primarily to reaffirm its previously issued full-year 2023 financial guidance. The company reiterated its GAAP diluted EPS guidance range of $6.90 to $7.12, Adjusted EPS guidance range of $8.50 to $8.70, and cash flow from operations guidance of $12.5 billion to $13.5 billion. Management also indicated that medical costs are expected to remain in line with pricing expectations and that more than 50% of full-year earnings are anticipated in the second half of 2023, with Q3 earnings expected to be modestly higher than Q4 earnings. The filing also provides a detailed reconciliation for its projected Adjusted EPS, outlining various non-GAAP adjustments. These include amortization of intangible assets, net realized capital losses, a loss on assets held for sale related to the long-term care business, acquisition-related costs for Signify Health and Oak Street Health, and office real estate optimization charges. Investors should note that these non-GAAP measures are used by the company to analyze underlying business performance and trends and are not a substitute for GAAP measures.
Key Highlights
- 1Reaffirmed full-year 2023 GAAP diluted EPS guidance range of $6.90 to $7.12.
- 2Reaffirmed full-year 2023 Adjusted EPS guidance range of $8.50 to $8.70.
- 3Reaffirmed full-year 2023 cash flow from operations guidance range of $12.5 billion to $13.5 billion.
- 4Expects medical costs to remain in-line with pricing expectations.
- 5Anticipates more than 50% of full-year earnings to be generated in the second half of 2023.
- 6Projects Q3 earnings to be modestly higher than Q4 earnings.
- 7Provided reconciliation for non-GAAP adjustments impacting Adjusted EPS, including amortization, capital losses, asset sales, acquisition costs, and real estate charges.