CVS Health expects to earn at least $304 billion revenue next year, the healthcare giant announced at its investor day Thursday.
The company estimates revenues of between $304 billion and $309 billion for 2022. In addition, CVS is projecting earnings per share of between $8.10 and $8.30.
CVS also updated and boosted its guidance for 2021, according to the announcement. The company now expects at least $290.3 billion in revenue and at least $8 in earnings per share.
The updated numbers come as the company is planning a significant shift in strategy, closing 900 retail stores over the next three years while investing in digital health, primary care and new payer solutions. The company is also planning new store formats that spotlight those services.
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“Now is the time to undertake our next major evolution and capitalize on our role as the leading health solutions company in America,” said CVS Health President and CEO Karen Lynch in a statement. “By leaning into our high-growth foundational businesses and expanding our reach in areas like health services and primary care, we have an opportunity to shift care to be more centered around the consumer while capturing a meaningfully greater portion of health care spend."
"Ultimately, this plan is only possible with our unique combination of assets which will allow us to lower costs, increase access to quality care and improve health outcomes for consumers, patients and members—while delivering superior results for shareholders," Lynch said.
CVS said it's focused on a long-term growth trajectory that aims to return to low double-digit earnings per share growth starting in 2024 and moving forward.
“We have a strategic financial approach that will focus on a combination of foundational business growth, new sources of incremental value and strategic capital deployment in order to reach our long-term growth targets and drive shareholder returns,” CVS Health CFO Shawn Guertin said.
“We will also continue to prudently manage our balance sheet, while deploying capital against growth areas such as capability-focused M&A targets that will fit with our unique collection of assets and help accelerate our vision," he said.