CVS Health Corp (NYSE:CVS) stock fell 2.74% (As on May 4, 12:08:50 AM UTC-4, Source: Google Finance) after the company lowered its financial guidance for 2023, citing costs linked to two recent acquisitions that were part of an effort by the U.S. pharmacy chain to expand its offerings following an easing in COVID 19-related revenues. Adjusted operating income decreased 5.1% primarily driven by declines in the Pharmacy & Consumer Wellness segment, partially offset by increases in the Health Services segment. The Health Care Benefits segment total revenues increased 12.1% for the three months ended March 31, 2023 compared to the prior year driven by growth across all product lines. The MBR increased to 84.6% in the three months ended March 31, 2023 compared to 83.4% in the prior year reflective of the continued progression towards normalized utilization and lower impact from favorable development of prior-years’ health care cost estimates in the three months ended March 31, 2023 compared to the prior year.

Medical membership as of March 31, 2023 of 25.5 million increased 1.1 million members compared with December 31, 2022, reflecting increases across all product lines including an increase of approximately 900,000 members related to the individual exchange business within the Commercial product line. Pharmacy claims processed increased 3.7% on a 30-day equivalent basis for the three months ended March 31, 2023 compared to the prior year. The increase was primarily driven by net new business, increased utilization and the impact of an elevated cough, cold and flu season compared to the prior year. These increases were partially offset by a decrease in COVID-19 vaccinations. Excluding the impact of COVID-19 vaccinations, pharmacy claims processed increased 4.8% on a 30-day equivalent basis for the three months ended March 31, 2023 compared to the prior year.

CVS in the first quarter of FY 23 has reported the adjusted earnings per share of $2.20, beating the analysts’ estimates for the adjusted earnings per share of $2.10. The company had reported the adjusted revenue growth of 11 percent to $85.3 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $80.91 billion.

CVS Health Corp now expects adjusted earnings per share to come in at between $8.50 and $8.70 in its current fiscal year, down from its prior outlook of between $8.70 and $8.90, versus the analyst consensus of $8.73. The Company also confirmed its full-year 2023 cash flow from operations guidance range of $12.5 billion to $13.5 billion.