CVS Health Slashes Profit Outlook Due to Higher Medical Costs, Shares Drop
Key Points: CVS Health reports first-quarter revenue and adjusted earnings below expectations, significantly reducing its full-year profit outlook. The company attributes the downward revision to higher medical costs impacting its insurance business, particularly in Medicare Advantage. CVS shares drop by 10% in premarket trading following the announcement of the revised guidance. Investor concerns persist regarding the U.S. insurance industry's uncertainties and the impact on CVS's profitability. CVS Health has reported first-quarter revenue, adjusted earnings below expectations, and significantly reduced its full-year profit outlook, attributing the downward revision to elevated medical costs impacting the U.S. insurance industry. As a result, the...