CVS Health (NYSE:CVS) has forecasted revenue for 2024 to be at least $366 billion, which exceeds the current Street estimate of $345.5 billion.
The company anticipates adjusted earnings per share of at least $8.50, in line with the consensus, with the cash flow from operations projected to be at least $12.5 billion. Updates were shared ahead of the company’s 2023 Investor Day.
CVS shares rose 2.2% on the news.
CVS Health also said it plans to introduce a new pharmacy reimbursement model called CVS CostVantage, aimed at evolving the traditional reimbursement model and providing greater transparency and simplicity.
"We are leading with an approach that will shift how our retail pharmacy is compensated by implementing a more transparent and sustainable model that fairly aligns pharmacy reimbursement to the quality services we provide," said Prem Shah, PharmD, executive vice president, Chief Pharmacy Officer and President, Pharmacy and Consumer Wellness, CVS Health.
This new approach is scheduled to be launched with pharmacy benefit managers (PBMs) for commercial payors in 2025.
The company also reaffirmed its financial guidance for the year 2023. It continues to see adjusted EPS at $8.60 (up or down 10 cents) on revenue in the range of $351.5-357.3 billion.
The average analyst estimate is $8.60 for FY23 EPS on revenue of $353.7 billion.
"We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers," said CVS Health President and CEO Karen S. Lynch.
CVS Health has approved a quarterly dividend of $0.665 cents per share, marking a 10% increase from the previous dividend of $0.605 cents per share. The dividend will be payable on February 1, 2024, to shareholders of record as of January 22, 2023.