Why CVS Health Jumped Nearly 4% Today
Shares of drugstore chain CVS Health (NYSE: CVS) are higher by nearly 4% as of 3:24 p.m. ET Tuesday following an important update from the company. While the bulk of today's press release lays out plans to overhaul its prescription drug-pricing paradigm and improve its primary care operation, investors are most likely responding to the company's bullish guidance for fiscal/calendar 2024.
The announcement was made this morning in conjunction with today's Investor Day event held in Boston, Massachusetts. In the coming year, the company's pharmacy customers will see more detailed information regarding their prescription-drugs' costs as well as their insurer's portion of the total cost; in some cases, customers may see lower prescription-drug prices. Customers using this information will also enjoy a more convenient integration of CVS Health's current clinical and cost-combatting prescription drug-coverage plans as well as its specialty-care offerings.
More than anything, investors now know what to expect in the coming year. The drugstore chain anticipates turning a minimum of $366 billion worth of revenue into adjusted net income of $17.2 billion, translating into per-share income of $8.50. Analysts had been calling for profits of $8.51 per share on consensus revenue of $345.8 billion.
Source Fool.com
