CVS shares plummet as health company slashes profit outlook on higher medical costs
Publishing timestamp: 2024-05-01 12:49:55
Summary
CVS Health reported first-quarter revenue and adjusted earnings that missed expectations, leading to a nearly 18% drop in shares. The company also lowered its full-year profit outlook due to higher medical costs impacting the U.S. insurance industry. Insurers are seeing spikes in medical costs as more Medicare Advantage patients return to hospitals for delayed procedures. CVS is facing challenges in its insurance business and is committed to improving margins next year.
Sentiment: NEGATIVE
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Source: https://www.cnbc.com/2024/05/01/cvs-health-cvs-earnings-q1-2024.html