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CVS Health (CVS) reported strong fourth quarter results, beating expectations on both revenue and earnings with $97.71 billion in revenue and adjusted earnings per share (EPS) of $1.19.
Jefferies Healthcare Services equity research analyst Brian Tanquilut joins Morning Brief to discuss the company's growth prospects following its optimistic outlook.
Tanquilut explains that the company's 2025 profit guidance of $5.75 to $6.00 per share is driving investor optimism. The earnings call provided "a clear path" for the company to exceed expectations in upcoming quarters, following previous periods of weaker performance.
"The fact that they're above range, there's little risk, or at least perceived little risk to missing numbers again, and that there's significant upside over the next few years in terms of what that earnings potential could be three to five years down the road ... that's where a lot of this excitement is coming from this morning," he explains.
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However, Tanquilut cautions that this turnaround strategy remains "a multiyear process" as the company works to strengthen its Aetna business and pricing power.
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This post was written by Angel Smith