Cvs Health Corporation · NYSE:CVS
Cvs Health — Q2 2024 Earnings Presentation
13 slides from Cvs Health's earnings presentation, Aug 7, 2024
Slide 1: Second quarter 2024 earnings conference call
Second quarter 2024 August 7, 2024 Earnings conference call Karen S. Lynch Thomas F. Cowhey President and Executive Vice President and Chief Executive Officer Chief Financial Officer 1 ©2024 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 2: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This presentation includes forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of CVS Health Corporation (“CVS Health”). By their nature,
Slide 3: Financial highlights
Financial highlights Delivered revenue growth of 2.6% and adjusted EPS of $1.83 in the second quarter of 2024. Lowered 2024 adjusted EPS guidance to $6.40 to $6.65 primarily due to pressure in Health Care Benefits. Enterprise SECOND QUARTER FULL-YEAR 2024 Highlights Financial Results Company Guidanc
Slide 4: Accelerating opportunities to drive integrated value
Accelerating opportunities to drive integrated value We are People served across CVS Health 186M+ demonstrating progress towards Consumers accessing 2 or more key measures of CVS Health offerings 57M+$28.8 success across the enterprise, Unique digital consumers ~60M enabling us to Net customer savin
Slide 5: Building a world of health around every consumer
OUR VISION Building a world of health around every consumer 5 ©2024 CVS Health and/or one of its affiliates. Confidential and proprietary.
Slide 6: Our Strategic Imperatives
Our Strategic Imperatives Grow Build Enable Create Empower our core business diverse national care consumers’ health seamless engagement our people and delivery and value- with care and and personalized culture based care capabilities coverage capabilities experiences across across local points all
Slide 7: Consolidated Results
Consolidated Results in billions, Business highlights except per share amounts Q2 2024 Q2 2023 Signed CVS CostVantage™ agreements with eight pharmacy benefit managers to date, including Total Revenues $91.2 $88.9 CVS Caremark, who combined make up over fifty percent of our commercial scripts. Adjust
Slide 8: 2024 Consolidated Guidance
2024 Consolidated Guidance in billions, except per share Full-year 2024 Full-year 2024 Business highlights amounts and tax rate as of August 7, 2024 as of May 1, 2024 Announced multi-year productivity Total Revenues $369.0 – $372.0 At least $369.0 initiative expected to deliver $2.0 billion in savin
Slide 9: Superior assets. Superior care. Superior value.
Superior assets. Superior care. Superior value. 9 ©2024 CVS Health and/or one of its affiliates. Confidential and proprietary. ©2024 CVS Health and/or one of its affiliates. Confidential and proprietary. 9
Slide 10: Health care benefits
Health care benefits in billions, except MBR and membership Q2 2024 Q2 2023 Business highlights Total Revenues $32.5 $26.7 Increase of ~1.3 million medical Adjusted Operating Income members reflects increase in $0.94 $1.54 Medicare and Individual Exchange, Quarter Results Total Medical Membership 27
Slide 11: Health services
Health services in billions, except pharmacy claims Q2 2024 Q2 2023 Business highlights Quarter Results Total Revenues $42.2 $46.2 Health Services revenue of ~$42 billion was impacted by the Adjusted Operating Income $1.92 $1.89 previously announced loss of a large Pharmacy Claims Processed1 client
Slide 12: Pharmacy & consumer wellness
Pharmacy & consumer wellness in billions, except prescriptions filled Q2 2024 Q2 2023 Business highlights Quarter Results Total Revenues $29.8 $28.8 Generated revenue of ~$30 billion, reflecting an increase of nearly 4% Adjusted Operating Income $1.24 $1.41 versus the prior year and over 6%2 on a sa
Slide 13: Footnotes
Footnotes Second quarter 2024 1. Includes an adjustment to convert 90-day prescriptions to the equivalent of three 30-day prescriptions. 2. Same store sales and prescription volume represent the change in revenues and prescriptions filled in the Company’s retail pharmacy stores that have been operat