CVS inventory beneficial properties after steerage increase at the same time as opioid prices set off Q3 loss (NYSE:CVS)

After saying better-than-expected financials for Q3 2022 and a rise to the full-year outlook, CVS Well being (NYSE:CVS) added ~5% pre-market Wednesday even because the pharmacy operator swings to a quarterly loss due to prices associated to opioid lawsuits.

Complete income for the interval rose ~10% YoY to $81.2B due to progress from all segments, whereas a $5.2B pre-tax opioid litigation cost and $2.5B pre-tax loss on belongings held on the market led to a $3.4B internet loss in comparison with $1.6B internet earnings within the prior yr interval.

Well being Care Advantages Section generated $22.5B income with ~10% YoY progress as medical memberships grew 590K from Q3 2021 to 24.3M whereas the Medical Advantages Ratio dropped to ~84% from ~86% within the prior yr interval.

The Pharmacy Providers Section added $43.2B to the topline with ~11% YoY progress because the variety of complete pharmacy claims processed elevated ~4% YoY on a 30-day equal foundation pushed by new enterprise and elevated utilization regardless of a decline in COVID vaccinations.

Retail/LTC Section introduced $26.7B income with ~7% YoY progress due to a ~2% YoY progress in prescriptions crammed on a 30-day equal foundation.

The corporate reported an working lack of $3.9B for the interval in comparison with $3.1B working earnings prior to now yr as a result of opioid litigation prices and loss on belongings held for gross sales, whereas its adjusted working earnings rose $160M.

CVS Well being (CVS) raised its full-year outlook for adjusted EPS and money move from operations to $8.55 – $8.65 and $13.5B – $14.5B from $8.40 – $8.60 and $12.5B estimated three months in the past, respectively. Nonetheless, the corporate lowered its steerage for GAAP diluted EPS to $3.12 – $3.22 from $7.23 – $7.43.

Learn extra concerning the $5B opioid deal CVS Well being (CVS) introduced with the earnings.