Mixed Q3 results for CVS Health as higher medical costs impact profits, new leadership announced.

From CNBC: 2024-11-06 06:53:11

CVS Health reported mixed third-quarter results as higher medical costs impacted profits. CEO David Joyner acknowledged the challenges and emphasized the importance of achievable guidance. Wall Street’s confidence in CVS has declined, with shares down 27% this year. The company named Steve Nelson as the new president of Aetna to help turn the business around. CVS reported $95.43 billion in revenue for the third quarter, up 6.3% from last year. The company posted a net income of $71 million, down from $2.27 billion a year ago. CVS expects to release premium deficiency reserves in the fourth quarter and does not anticipate booking reserves for 2025. CVS’s insurance business saw revenue of $33 billion but reported an adjusted operating loss of $924 million due to increased medical costs. CVS’s health services segment generated $44.13 billion in revenue, while the pharmacy and consumer wellness division saw $32.42 billion in sales for the quarter.



Read more at CNBC:: CVS Health (CVS) earnings Q3 2024