WOONSOCKET, RHODE ISLAND, November 1, 2023 — CVS Health Corporation (NYSE: CVS) today announced operating results for the three months ended September 30, 2023.
CVS Health reports third quarter results
Key financial data
|Three Months Ended September 30,|
|In millions, except per share amounts||2023||2022||Change|
|Operating income (loss)||3,690||(3,919)||7,609|
|Adjusted operating income(1)||4,456||4,349||107|
|Diluted earnings (loss) per share||$1.75||($2.59)||$4.34|
Third quarter highlights
- Total revenues increased to $89.8 billion, up 10.6% compared to prior year
- GAAP diluted EPS of $1.75 and Adjusted EPS of $2.21
- Total revenues increased to $264.0 billion, up 10.6% compared to prior year
- GAAP diluted EPS of $4.88 and Adjusted EPS of $6.62
- Generated cash flow from operations of $16.1 billion
Note: Financial information for the three and nine months ended September 30, 2022 throughout this press release has been revised to conform with certain current period financial statement changes as described on page 16.
2023 Full-year guidance
- Revised GAAP diluted EPS guidance range to $6.37 to $6.61 from $6.53 to $6.75
- Confirmed Adjusted EPS guidance range of $8.50 to $8.70
- Confirmed cash flow from operations guidance range of $12.5 billion to $13.5 billion
“Our colleagues helped us deliver another quarter of positive results across our business areas. Despite a challenging business environment, we continue adapting to the changing needs of our consumers by connecting our care delivery capabilities in communities across the country, broadening access to care and lowering costs.”
— Karen S. Lynch, CVS Health President and CEO
In the spotlight
- In August 2023, launched Cordavis™, a wholly owned subsidiary that will work with pharmaceutical manufacturers to commercialize and/or co-produce biosimilar products for the U.S. market. Cordavis products will be FDA approved, high quality and easy for patients to use and will help ensure consistent long-term supply of affordable biosimilars.
- In October 2023, announced Aetna’s 2024 Medicare products ― the largest Medicare offering in Aetna’s history ― featuring more choices, flexible benefit allowances, a strong provider network and further simplified medical and prescription drug plans that support members’ overall health and well-being.
- On October 13, 2023, announced that 87 percent of Aetna’s Medicare Advantage (“MA”) members are in 2024 MA prescription drug plans that are rated 4 stars or higher (out of 5 stars) by the Centers for Medicare & Medicaid Services.
- Appointed two new members to CVS Health Corporation’s Board of Directors – Scott Kirby, CEO of United Airlines Holdings, Inc., and Michael Mahoney, Chairman and CEO of Boston Scientific Corporation.
- Returned $779 million to shareholders through dividends during the three months ended September 30, 2023.
The information presented above includes both GAAP and non-GAAP financial measures to assist in the comparison of the Company’s past financial performance with its current financial performance. See “Non-GAAP Financial Information” in the full press release, which is linked below, for explanations of the non-GAAP financial measures presented above and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure.
Please review the entire press release for the quarterly period, which provides important additional information related to our financial results. The full press release can be downloaded here (PDF).
(1) The Company defines adjusted operating income as operating income (loss) (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related transaction and integration costs, restructuring charges, office real estate optimization charges, losses on assets held for sale, opioid litigation charges and gains/losses on divestitures. The Company uses adjusted operating income as its principal measure of segment performance as it enhances the Company’s ability to compare past financial performance with current performance and analyze underlying business performance and trends. The consolidated measure is not determined in accordance with GAAP and should not be considered a substitute for, or superior to, the most directly comparable GAAP measure, consolidated operating income (loss). See “Non-GAAP Financial Information” in the full press release linked above for additional information regarding the items excluded from consolidated operating income (loss) in determining consolidated adjusted operating income.
(2) GAAP diluted earnings (loss) per share and Adjusted EPS, respectively, are calculated by dividing net income (loss) attributable to CVS Health and adjusted income attributable to CVS Health by the Company’s weighted average diluted shares outstanding. The Company defines adjusted income attributable to CVS Health as net income (loss) attributable to CVS Health (GAAP measure) excluding the impact of amortization of intangible assets, net realized capital gains or losses and other items, if any, that neither relate to the ordinary course of the Company’s business nor reflect the Company’s underlying business performance, such as acquisition-related transaction and integration costs, restructuring charges, office real estate optimization charges, losses on assets held for sale, opioid litigation charges, gains/losses on divestitures, as well as the corresponding income tax benefit or expense related to the items excluded from adjusted income attributable to CVS Health and certain discrete tax items.
Adjusted EPS for the three months ended September 30, 2022 is calculated utilizing adjusted weighted average diluted shares outstanding, which includes 8 million potential common equivalent shares, as the impact of these shares was dilutive. The potential common equivalent shares were excluded from the calculation of GAAP loss per share for the three months ended September 30, 2022, as these shares would have had an anti-dilutive effect as a result of the GAAP net loss incurred. See “Non-GAAP Financial Information” in the full press release linked above for additional information regarding the items excluded from net income (loss) attributable to CVS Health in determining adjusted income attributable to CVS Health.