CVS stock dips after cutting its 2023 forecast

The Yahoo Finance Live team discusses a drop in CVS stock after the company cuts its forecast for the year.

Video transcript

- All right, let's switch gears a little bit. Sticking kind of with health care, though, the stock I'm watching today is CVS Health. Shares are under pressure after posting its quarterly results.

Now, the drugstore chain and more-- it's more than that now-- says profit fell to $2.14 billion or buck 65 a share. Adjusted earnings was $2.20 a share. Revenue came in at $85.3 billion.

While both numbers were better than expected, CVS cut its forecast for the year, cutting its forecast to reflect the impact of those recent acquisitions, Signify Health and Oak Street Health. So we're seeing some play with regard to the cut to its forecast there, and we typically see that with acquisitions, the impact to the bottom line.

- Right, but CVS also has an interesting thing going on today, and that is the reorganization of how it's going to be reporting going forward. And I thought that was interesting because you have the PBM paired with all of this health care services. So I'm really intrigued by that. I'm going to be watching that pretty closely.

- Yeah, exactly. And even though there is some concern here just in terms of the M&A cost, which shouldn't really be a huge surprise here to the Street, the sales weren't that bad. They were actually up on a year-over-year basis, weren't they, here? And despite the fact that we have certainly seen a massive move to the downside-- a big decline, you could say, in the number of COVID vaccinations, which we know has been a challenge, a headwind here for CVS-- the fact that we did see that sales number rise, obviously, is reassuring here for the Street, right?

- All right, we'll leave it there.