Shares of CVS Health Corp. CVS gained 0.6% in premarket trading Wednesday, after the health care services and drug store chain reported a first-quarter profit beat and revenue that rose well above expectations, but cut its full-year earnings outlook. Net income fell to $2.14 billion, or $1.65 a share, from $2.36 billion, or $1.77 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.20 topped the FactSet consensus of $2.09. Revenue grew 11.0% to $85.28 billion to beat the FactSet consensus of $80.79 billion. Health care benefits revenue rose 12.1% to $25.88 billion, health services revenue increased 12.6% to $44.59 billion and primary and consumer wellness revenue was up 7.8% to $27.92 billion. For 2023, the company cut its guidance range for adjusted EPS to $8.50 to $8.70 from $8.70 to $8.90, while the FactSet consensus was for $8.76. The stock, which has bounced 0.7% over the past week, after closing April 25 at a two-year low, has tumbled 21.9% year to date through Tuesday, while the Health Care Select Sector SPDR exchange-traded fund XLV has slipped 1.6% and S&P 500 SPX has gained 7.3%.
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