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CVS Health (NYSE: CVS) will present its plan to accelerate growth. Key points:
Company will leverage its retail footprint to deliver managed care services, creating a consumer-centric technology infrastructure. Its HealthHUBs, including minute clinics, will expand to 1,500 retail (pharmacy) locations by the end of 2021.
HealthHUBs will offer services aimed at chronic disease / care management, with 60% of adults having a chronic disease (hypertension, diabetes, heart disease, asthma, depression).
Management projects ~ $ 850M in operating income in 2022 increasing to ~ $ 2.5B over the long term. It integration initiatives should save ~ $ 900M in 2021 and beyond while its modernization efforts should be $ 1.5B – 2.0B in 2022 and beyond.
Non-GAAP EPS should grow to mid-single-digits by 2021 and low double-digits in 2022 and beyond.
Reiterates 2019 guidance: Revenues: $ 251.2B – 254.4B; non-GAAP operating income: $ 15.0B – 15.2B; EPS: $ 4.90 – 5.05; non-GAAP EPS: $ 6.75 – 6.90; cash available for pay down debt: $ 4.2B – 4.6B. Leverage ratio should drop to ~ 3x in 2022.
Annual capital expenditures: $ 2.3B – 2.6B.
Shares are up 3% premarket on light volume.
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