Q2 2024 CVS Health Corp Earnings Call Transcript
Key Points
- CVS Health Corp (CVS) reported adjusted earnings per share of $1.83 and adjusted operating income of $3.7 billion for the quarter.
- Total revenues exceeded $91 billion, with $8 billion in operating cash flow generated in the first half of the year.
- The company expanded the number of consumers accessing two or more CVS Health offerings to 57.7 million, an increase of nearly 2.5 million consumers.
- CVS Health Corp (CVS) signed CVS CostVantage agreements with eight pharmacy benefit managers, covering more than 50% of their commercial scripts.
- The Health Services segment generated revenues of more than $42 billion and delivered $1.9 billion in adjusted operating income.
- The Health Care Benefits segment underperformed, leading to leadership changes and a revised adjusted EPS guidance range of $6.40 to $6.65.
- Medical cost trends in the Medicare Advantage business remained elevated, impacting the medical benefit ratio and overall financial performance.
- The company experienced a significant increase in the final 2023 risk adjustment for the individual exchange business, leading to a $225 million accrual.
- CVS Health Corp (CVS) saw a decline in same-store front store sales by about 4% compared to the same quarter last year, reflecting general softening of consumer demand.
- The company is facing continued pharmacy reimbursement pressure and the impact of recent generic introductions, which affected the pharmacy and consumer wellness segment.
(Operator Instructions) I'm now going to hand over to Larry McGrath to begin. Larry, please go ahead, when you're ready.
Good morning, and welcome to the CVS Health Second-Quarter 2024 Earnings Call and Webcast. I'm Larry McGrath, Senior Vice President of Business Development and Investor Relations for CVS Health. I'm joined this morning by Karen Lynch, President and Chief Executive Officer; and Tom Cowhey, Chief Financial Officer.
Following our prepared remarks, we'll host a question-and-answer session that will include additional members of our leadership team. Our press release and slide presentation have been posted to our website, along with our Form 10-Q filed this morning with the SEC. Today's call is also being broadcast on our website where it will be archived for 1 year.
During this call, we'll make certain forward-looking statements. Our forward-looking statements are subject to significant risks and uncertainties that could cause
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