By Senad Karaahmetovic
In addition to confirming the deal to acquire Oak Street Health (NYSE:OSH) for $39 per share in an all-cash transaction, CVS Health (NYSE:CVS) also reported fourth quarter results that beat average analyst estimates.
CVS posted an EPS of $1.99 on revenue of $83.85 billion, beating the consensus for earnings of $1.92 per share on revenue of $76.33B. Revenue increased by almost 10% year-over-year (YoY), led by an 11% increase in Pharmacy Services revenue.
The company said it processed just over 600 million pharmacy claims, up over 18M from a year-ago period.
"Last year was defined by outperformance across our foundational businesses, robust cash flow from operations and meaningful progress against our value-based care delivery strategy. 2022 was a year of progress, and we continue to build on that momentum with bold moves that will improve the health care experience," said Karen Lynch, CVS Health President, and CEO.
For 2023, CVS said it expects EPS between $8.70 and $8.90 with the midpoint coming in below the consensus of $8.86. Similarly, the cash flow forecast for 2023 of $12.5-13.5B was below the $14.82B that analysts were expecting.
Still, CVS shares trade nearly 2% higher in pre-market Wednesday as investors digest Q4 results, full-year forecast, and the $10.6B acquisition of Oak Street Health.