CVS Health: Pandemic Will Hurt Financial Results, Full Scope Not Yet Clear
March 26 2020 - 10:57AM
Dow Jones News
By Anna Wilde Mathews
CVS Health Corp. warned investors Thursday that the coronavirus
pandemic will hurt its financial results, but the full scope isn't
yet clear.
The drugstore and insurance giant said in a securities filing it
can't estimate the effect that the coronavirus will have on its
performance, "but the adverse impact could be material."
Among the impacts on its businesses, CVS warned of increases in
the medical costs its Aetna health insurance unit must cover
without an offsetting rise in premium payments.
The company also said it expects to see effects from employer
layoffs, which reduce the number of people that Aetna covers.
And the company expressed concern about the "timing and
collectability" of payments from commercial and government
customers hurt by the new coronavirus.
CVS said it also was seeing increases in its own costs due to
the virus, as more employees work from home and it pays for support
programs for customers, workers and members. The company also noted
the deteriorating economies were hurting its investment
portfolio.
Write to Anna Wilde Mathews at anna.mathews@wsj.com
(END) Dow Jones Newswires
March 26, 2020 10:42 ET (14:42 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
CVS Health (NYSE:CVS)
Historical Stock Chart
From Feb 2024 to Mar 2024
CVS Health (NYSE:CVS)
Historical Stock Chart
From Mar 2023 to Mar 2024