CVS Health on Wednesday reported first-quarter revenue and adjusted earnings that missed expectations and the company was forced to slash its full-year profit outlook, citing higher medical costs
"The current environment does not diminish our opportunities, enthusiasm, or the long-term earnings power of our company. We are confident we have a pathway to address our near-term Medicare Advantage challenges. We remain committed to our strategy and believe that we have the right assets in place to deliver value to our customers, members, patients, and shareholders,” said Karen S. Lynch, CVS Health President and CEO
CVS now expects 2024 adjusted earnings of at least $7 per share, down from a previous guidance of at least $8.30 per share.
CVS also cut its unadjusted earnings guidance to at least $5.64 per share, down from at least $7.06 per share.
“As we close the quarter, it became apparent we were experiencing broad-based utilization pressure in our Medicare Advantage business in a few areas,” Lynch added during an earnings call Wednesday.
She noted that outpatient services and supplemental benefits were elevated during the period and "exceeded the company’s projections."
The company has experienced multiple waves of layoffs.
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