CVS Health Higher on Dividend Boost, Solid 2024 Revenue Forecast

NYSE:CVS   CVS Health Corporation
CVS Health, facing the potential for deeper industry consolidation, lifted its 2024 sales forecast and boosted its quarterly dividend.

CVS Health (CVS) - shares jumped higher Tuesday after the group boosted its quarterly dividend, while forecasting stronger-than-expected 2024 sales. The health-care and drugstore group looks to streamline its broader business amid renewed talk of consolidation in the health-insurance sector.

CVS sees overall revenue of at least $366 billion next year, firmly ahead of the LSEG forecast of around $346 billion, with adjusted profit coming in at around $8.51 per share. The group also reiterated its 2023 forecasts for adjusted profit in the region of $8.50 to $8.70 a share as well as cash flows from its overall business to come in between $12.5 billion to $13.5 billion.

In addition, CVS lifted its quarterly dividend by 10%, to 66.5 cents a share, payable Feb. 1 to holders of record Jan. 22.

CVS shares were marked 2.44% higher in premarket trading to indicate an opening bell price of $70.18 each, a move that would nudge the stock into positive territory for the past six months.

CVS rebrands health services division
The Woonsocket, Rhode Island-based group, one of the country's biggest pharmacy-benefits managers, also unveiled plans to rebrand its Health Services segment under the name CVS Healthspire. That division will include a host of its current units, including Oak Street Health, Signify and its MinuteClinic.

"Delivering care in a more integrated way — especially for complex patients with chronic health conditions — improves health outcomes and the patient experience," said Oak Street Health's interim president, Mike Pykosz.

Technical Analysis
CVS is trading near the bottom of its 52-week range and below its 200-day simple moving average. Investors have been pushing the share price lower, and the stock still appears to have downward momentum. This is a negative sign for the stock's future value.

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