Summary by Moomoo AI
CVS Health reported Q2 2024 revenues of $91.2 billion, up 2.6% YoY, with GAAP EPS of $1.41 and Adjusted EPS of $1.83. The Health Care Benefits segment faced challenges with increased utilization and unfavorable Medicare Advantage star ratings impact, while Health Services and Pharmacy segments showed resilience.The company revised its full-year 2024 guidance, lowering GAAP EPS to $4.95-$5.20 from $5.64 and Adjusted EPS to $6.40-$6.65 from $7.00. Cash flow from operations guidance was reduced to approximately $9.0 billion from $10.5 billion. In response to Healthcare Benefits segment challenges, CEO Karen Lynch announced immediate leadership changes, including Brian Kane's departure.Key operational metrics showed mixed performance: Medical benefit ratio increased to 89.6% from 86.2% YoY, while pharmacy claims processed decreased 18.3% due to a large client loss. The company maintained strong prescription growth with a 3.6% increase in prescriptions filled at retail pharmacies.
