According to the CDC, at week nineteen, only 1.9% of patient visits were related to respiratory illnesses, including fever, cough, and sore throat. As a result, we expect the US government to reduce spending on these respiratory infections, including vaccinations and population testing. The second factor is the decline in influenza and COVID-19 activity until mid-autumn.
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In addition, Americans with traditional Medicare will no longer be able to get free COVID-19 tests, which will also reduce services provided by CVS Health subsidiaries. As a result, CVS Health's Medicaid business could see some customers lose coverage, hurting the company's revenue growth in the next two quarters. After this date, Medicaid redeterminations resume, which means that the necessary checks will be carried out to ensure that patients meet the requirements of CHIP and Medicaid. The first of these is the decision by the Department of Health and Human Services to end the public health emergency from the end of May 11, 2023. There are several factors contributing to the emerging trend. Market did not like is the decline in revenue growth rates. Since the beginning of 2022, CVS Health has been beating analyst consensus estimates by a relatively large margin, thanks to the company's expanding product portfolio, strong sales of consumer health products, and strong demand for medical services during the COVID-19 pandemic and flu season.ĬVS Health's revenue is expected to continue to show positive dynamics and be $83.09-87.52 billion for the second quarter of 2023, up 6.1% from Wall Street analysts' expectations for the first quarter of 2023. CVS Health's Financial PositionĬVS Health's revenue for the first three months of 2023 was $84.94 billion, up 1.7% from the previous quarter and 10.8% from the first quarter of 2022. We initiate our coverage of CVS Health with an "outperform" rating for the next 12 months. At the same time, share prices of key competitors such as Quest Diagnostics ( DGX), Walgreens Boots Alliance ( WBA), and Cigna ( CI) demonstrated more favorable dynamics.Īuthor's elaboration, based on Seeking Alpha
Since the beginning of 2023, CVS Health's share price has decreased by about 27%, reaching March 2021 levels. On May 3, 2023, CVS Health released financial results for the first three months of 2023, which not only beat analysts' expectations but were able to demonstrate that demand for services and products from the company's three core segments is growing at a faster pace, despite a significant decline in COVID-19 and influenza activity.
Through the acquisition of Aetna in 2018, the company has significantly expanded its presence in the health insurance industry, and about 35 million people have access to a wide range of health plans, including Medicare Supplement and Medicare Advantage plans. CVS Health's subsidiaries serve tens of millions of Americans every year with access to prescription drugs, counseling, and extensive care for older people, with the ultimate goal of improving their quality of life. CVS Health ( NYSE: CVS) is a leading healthcare company with an extensive network of pharmacies and medical clinics in the United States.
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