Higher Costs To Weigh On CVS Health’s Q2?

CVS Health (NYSE: CVS) will report its Q2 2023 results on Wednesday, Aug 2. We expect the company’s revenues to come in at $86.0 billion, slightly below the consensus estimate of $86.5 billion. This would mark year-over-year growth of about 7%. Earnings will likely come in at about $2.10 on a per-share and adjusted basis, nearly matching the $2.11 consensus estimate. See our interactive dashboard analysis on CVS Health Earnings Preview for more details on how the company’s revenues and earnings will likely result for the quarter. So, what are some of the trends that are likely to drive CVS
CVS
Health’s results?

The company will likely continue to benefit from the steady growth of its healthcare and pharmacy services businesses. The increased prescription volume and drug price inflation will likely drive the top-line expansion. However, higher costs, primarily benefits costs, probably weighed on its overall performance. Looking at Q1 2023, CVS Health’s revenues were up 11%, led by about a 12% rise in Health Care Benefits and Health Services segments and an 8% growth in the Pharmacy & Consumer Wellness segment.