CVS Names David Joyner CEO as Shares Plunge 13% on Lower Earnings and Withdrawn Outlook

Oct 18, 2024, 10:45 AM

CVS Health has appointed David Joyner as its new Chief Executive Officer, replacing Karen Lynch, who stepped down after an agreement with the board. The company is backing away from its most recent 2024 outlook issued in August, as it grapples with lower-than-expected earnings. CVS announced that its preliminary third-quarter adjusted earnings per share are expected to be between $1.05 and $1.10, significantly below analysts' estimates of $1.70. The healthcare giant also cited higher medical cost trends, with a medical loss ratio of 95% compared to expectations of 91%. Following the news, CVS shares have plunged by over 13% in pre-market trading.