As you might know, CVS Health Corporation (NYSE:CVS) recently reported its third-quarter numbers. Results overall were not great, with earnings of US$0.07 per share falling drastically short of analyst expectations. Meanwhile revenues hit US$95b and were slightly better than forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for CVS Health
Taking into account the latest results, the current consensus from CVS Health's 23 analysts is for revenues of US$385.9b in 2025. This would reflect a satisfactory 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 43% to US$5.70. In the lead-up to this report, the analysts had been modelling revenues of US$386.3b and earnings per share (EPS) of US$6.13 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$69.62, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CVS Health at US$93.00 per share, while the most bearish prices it at US$60.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that CVS Health's revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2025 being well below the historical 8.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that CVS Health is also expected to grow slower than other industry participants.