2024-02-07 11:45:36 ET
Summary
- CVS Health Corporation announced its Q4 and FY 2023 earnings, with impressive top line revenue growth but mixed bottom line performance.
- The company's cash flow from operations declined year-on-year, but still remains a key strength of CVS.
- CVS is a company of national significance with revenues of $358bn in 2023, but its valuation is 5x less than UnitedHealth, suggesting it may be undervalued.
- CVS's key Medicare Advantage business has been hit by rising costs, pressure on government rate-setting - but that business ultimately looks here to stay.
- CVS Health is more UnitedHealth than RiteAid and may be tweaking its business model at the right time - short-term pain for long-term gain is management's mantra.
Investment Overview - Reviewing CVS Q4 and FY23 Earnings
CVS Health Corporation ( CVS ), the self-styled "leading health solutions company building a world of health around every consumer it serves and connecting care so that it works for people wherever they are," announced its Q4 2023 and FY 2023 earnings today, as well as providing guidance for 2024.
First of all, let's consider the headline figures, as per the below slide from CVS' earnings presentation:
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For further details see:
CVS Health FY23 Earnings: Downgrades Inevitable, Long Term Outlook In The Balance