CVS Health Corp's (NYSE: CVS) Q1 sales increased 11% Y/Y to $85.28 billion, beating the consensus of $80.95 billion.
The company's pharmacy and consumer wellness segment saw revenue grow 12% to $25.88 billion, as increased prescription volumes and higher prices offset declining revenue from fewer Covid-19 vaccines and tests.
Prescriptions filled increased by 2.5% on a 30-day equivalent basis, primarily driven by increased utilization and the impact of an elevated cough, cold & flu season, partially offset by a decrease in COVID-19 vaccinations.
Excluding the impact of COVID-19 vaccinations, prescriptions filled increased by 4.5%.
Related: Investors Underestimate Power Of This Pieced Flywheel: Analyst Kicks Off Coverage On CVS Health.
Its health services segment reported revenue of $44.59 billion, up 13% from a year ago.
The insurance business' medical benefit ratio, or spending on claims against premiums earned, was 84.6%, compared with 83.4% a year earlier, reflecting the continued progression towards normalized utilization.
Adjusted EPS was $2.20, beating the consensus of $2.09.
On March 29, CVS Health completed the nearly $8 billion acquisition of Signify Health, adding in-home services to its offerings.
On May 2, the company closed its $10.6 billion deal for Oak Street Health's 600 primary-care centers.
Outlook: CVS Health has lowered FY23 adjusted EPS to $8.50-$8.70 from prior guidance of $8.70-$8.90 and the consensus of $8.75.
The company also confirmed its full-year 2023 cash flow from the operations guidance range of $12.5 billion to $13.5 billion.
Price Action: CVS shares are down 3.09% at $70.51 on the last check Wednesday.
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