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CLAIM #18244 · CVS Health Corp (CVS) · 2023Q2 earnings call · Aug 2, 2023 · due Dec 31, 2024

we have a high degree of visibility into getting the effect that we committed to for 2024.

Shawn Guertin · CFO

PENDING
graded after results covering Dec 31, 2024 are reported

In context

d Oak Street were the other two. Could you maybe just help us think about the magnitude across each of those major buckets in terms of what drove the guidance revision? Shawn Guertin: Yes, sure. On the restructuring charge, there’s the timing of all of this that will have minimal impact the actions we take on 2023, to the extent there is any impact. We’ve thought that through in our reaffirmation of guidance. But really, this was a major step forward in delivering the $700 million to $800 million of G&A savings that we talked about in May, and the job OMs alone, as we mentioned, contributed probably close to $600 million of that benefit, but there’s other things we’ve done in terms of shutting down projects. Obviously there’s been open positions we’re not going to hire for as well, and so we have a high degree of visibility into getting the effect that we committed to for 2024. On 2024 guidance, you’re correct - there are really, I would say, three kind of performance items, some of which have a lot to do with the external environment, and then obviously the one decision. The positive item, obviously, is we do expect some of the outperformance in pharmacy services that we’re experiencing in 2023 will pull through favorably into our 2024 performance. I would note that not all this favorability will pull through as it will naturally work its way into client pricing as contracts reset in 2024, so you can see the magnitude of our increase for this year, it’s obviously not that much because we’re not going to pull all that through, but it’s a meaningful positive item for next year. Similarly, I think on the headwind side, the largest provision we’ve made in our guida

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SEC filings for CVS · Claim quote is verbatim from the 2023Q2 earnings call.