CLAIM #18127 · CVS Health Corp (CVS) · 2022Q3 earnings call · Nov 2, 2022 · due Dec 31, 2023
“But you're talking about probably removing $900 million of operating income on COVID-related categories in retail”
Shawn Guertin · CFO
In context
“what -- is that $0.50 COVID net headwind, that does include some COVID contribution and then the health care benefits mid- to high single-digit growth. Any way to couch out or tease out what you have in there relative to the investments around the stars performance? Shawn Guertin : Yes. We've contemplated whatever SG&A investments that we need to make in that outlook for next year, and then we will make some obviously, and that has been contemplated. I'm glad you asked about COVID and retail because you just want to make sure that everyone's grounded in that. As we mentioned, we're still around $3 billion of revenue. We've talked about the margin profile in that business before. In that $0.50, there's an item or two that actually kind of goes the other way like the hurricane, for example. But you're talking about probably removing $900 million of operating income on COVID-related categories in retail, which if you went back through each quarter's guidance increase, that's about what we've raised the guidance sort of over the course of the year. So we're resetting back to a number there for comparison purposes to something that's closer to sort of how we kind of entered the year. Again, I think this year is a good demonstration that there's an endemic tail to this business going forward. And so we are expecting some contribution likely not as high as we thought coming into this year. But again, that's also baked into our outlook of getting to $6 billion on that business. Michael Cherny : Got it. And then I don't mean to keep this completely hypothetical, but obviously, I'm not going to ask you about what could or could not happen with the primary care side on M&A. I'm going to ask on w”
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SEC filings for CVS ↗ · Claim quote is verbatim from the 2022Q3 earnings call.