Rising Cost For Health Insurers Bites CVS Health's Q1 Profit, Stock Tanks

CVS Health reported a Q1 sales increase of 3.7% to $88.4 billion, missing expectations due to a decline in Health Services and lower Health Care Benefits segment results. Adjusted EPS fell to $1.31 from $2.20, with a notable increase in Medicare utilization affecting profitability.

The company revised its full-year 2024 guidance downwards in response to ongoing high medical cost trends, cutting adjusted EPS and cash flow forecasts. CVS shares dropped significantly in premarket trading, reflecting investor concerns over these challenges.