CVS posts big earnings miss, cuts profit outlook on higher medical costs

CVS Health reported lower-than-expected first-quarter earnings and revenue, leading to a significant cut in its full-year profit outlook due to escalating medical costs impacting the U.S. insurance industry. The company's shares fell by 10% in premarket trading. CVS adjusted its 2024 earnings guidance downward, attributing the ongoing high medical costs in its insurance sector, particularly from Medicare Advantage plans, as a persistent challenge throughout the year. Despite these setbacks, CVS CEO Karen Lynch expressed confidence in overcoming these short-term obstacles and maintaining the company's long-term earnings potential.