- At its Investor Day today, 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 four markets by year-end and will expand to 1,500 retail (pharmacy) locations by the end of 2021.
- HealthHUBs will offer services aimed at chronic disease/care management, optimizing government programs and including home hemodialysis and analytics products, adding that 60% of adult Americans have 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 trim costs by $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 to 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.