CVS Health's Q2 Earnings Exceed Expectations, But Slash Full-Year Profit Forecast Due to Higher Medical Costs
CVS Health reported second-quarter earnings that topped expectations but slashed its full-year profit outlook, citing higher medical costs squeezing the U.S. insurance industry. The retail healthcare company has lowered its 2024 adjusted earnings forecast per share from its previous guidance. CVS' insurance segment experienced an increase in its medical benefit ratio, showing higher benefit payouts than premiums collected. Insurers have seen medical costs spike as more patients return to hospitals for procedures delayed during the pandemic.
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00:00It's Benzinga, and here's what's on the block.
00:03CVS reported second-quarter earnings that topped expectations but slashed its full-year
00:07profit outlook, citing higher medical costs that have been squeezing the U.S. insurance
00:11industry.
00:12The retail healthcare company has lowered its 2024 adjusted earnings forecast per share
00:16from its previous guidance.
00:18CVS's insurance segment experienced an increase in its medical benefit ratio, showing higher
00:23benefit payouts compared to premiums collected.
00:26Investors have seen medical costs spike as more patients return to hospitals for procedures
00:30delayed during the pandemic.
00:31For all things money, visit Benzinga.com.