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$CVS (+0,57ย %) Health Q3 Earnings Highlights:


๐Ÿ”น Adjusted EPS: $1.09 (Est. $1.55) ๐Ÿ˜•

๐Ÿ”น Revenue: $95.4B (Est. $92.7B) ๐ŸŸข; UP +6.3% YoY

๐Ÿ”น Appoints Steve Nelson as President


Health Care Benefits Segment

๐Ÿ”น Revenue: $32.996B; UP +25.5% YoY

๐Ÿ”น Adjusted Operating Income (Loss): $(924)M (compared to $1.5B profit in Q3 2023)

๐Ÿ”น Medical Benefit Ratio (MBR): 95.2% (vs. 85.7% in Q3 2023)

๐Ÿ”น Medical Membership: 27.1M; UP +1.4M YoY

๐Ÿ”ธ Premium Deficiency Reserves: $1.1B recorded, primarily in Medicare and individual exchange product lines, for anticipated Q4 losses


Health Services Segment

๐Ÿ”น Revenue: $44.1B; DOWN -5.9% YoY

๐Ÿ”น Adjusted Operating Income: $2.20B; UP +17.4% YoY

๐Ÿ”น Pharmacy Claims Processed: 484.1M; DOWN -16.5% YoY


Pharmacy & Consumer Wellness Segment

๐Ÿ”น Revenue: $32.4B; UP +12.3% YoY

๐Ÿ”น Adjusted Operating Income: $1.60B; UP +14.9% YoY

๐Ÿ”น Prescriptions Filled: 431.6M; UP +6.0% YoY


Financial and Operational Highlights

๐Ÿ”น Operating Income: $832M; DOWN -77.5% YoY

๐Ÿ”น Adjusted Operating Income: $2.55B; DOWN -42.8% YoY

๐Ÿ”น YTD Cash Flow from Operations: $7.2B


CEO Commentary

๐Ÿ”ธ "Our integrated model allows us to provide lower cost of care and a simpler, improved health care experience for consumers. Q3 results reflect strength in Health Services and Pharmacy & Consumer Wellness segments, while the Health Care Benefits segment faced challenges." โ€” David Joyner, CEO


Restructuring and Strategic Appointments

๐Ÿ”ธ CVS recorded $1.2B in restructuring charges, including $607M for store closures planned in 2025 and $293M in workforce optimization.

๐Ÿ”ธ Prem Shah appointed as Group President overseeing CVS Caremark and CVS Pharmacy operations. Steve Nelson, former ChenMed CEO, appointed President of Aetna.

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