CLAIM #18314 · CVS Health Corp (CVS) · 2023Q3 earnings call · Nov 1, 2023 · due Dec 31, 2024
“I think you're probably looking at a low-single digit growth as you think about the AOI there.”
Tom Cowhey · Interim CFO
In context
“to think about this. So we do think that you should see mid-single-digit core growth out of the business. But then you've got some very specific items that kind of are pluses and minuses against that. So the first would be the loss of the Centene contract and that we've sized that for folks in the past or implicitly. But I think as you think about how well that business has performed this year, that number has become a little bit larger. We also, as we talked about, we have the annualization of 340B. And so both of those will help the pressure that -- and offset some of that core growth. Offsetting that, you are going to see incremental value from Cordavis and you'll also see some of our overall cost savings that will be in the Pharmacy Services segment that will help to offset that. But I think you're probably looking at a low-single digit growth as you think about the AOI there. I mean we'll provide a lot more details on that as we get to Investor Day. As we think about the labor investments, I think there are other places that we can look to try to offset those. It's clear based on the environment that this is the right thing to do, and we're committed to doing that. I would also note that over the last few years through next year, we’ll have made over $1 billion investment in wages. And so we’re committed to continuing that strength and making sure that we’re a destination for employees. Elizabeth Anderson: Got it. Thanks so much. Operator: This concludes today's Q&A session. So I'll hand the call back to Karen Lynch for any concluding remarks. Karen Lynch: Thank you for joining the call. We will see you in December.”
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SEC filings for CVS ↗ · Claim quote is verbatim from the 2023Q3 earnings call.