CVS (CVS) stock fell more than 6% on news that the pharmacy chain will replace CEO Karen Lynch with another company executive, David Joyner.
The Wall Street Journal, which first reported news of Joyner’s appointment, said the company has come under pressure from hedge fund Glenview Capital Management for change, and its stock has fallen nearly 20% this year. I am doing it. CVS is reportedly considering strategic options, including dissolution.
CVS said David Joyner, executive vice president of CVS Health and president of CVS Caremark, the chain’s pharmacy health services business, replaced Lynch effective Thursday. Lynch has been CEO since 2021, but Joyner said in an interview with the Journal that the company will move forward unscathed.
CVS also said in Friday’s release that it expects third-quarter adjusted earnings per share to be between $1.05 and $1.10, according to the Bloomberg consensus estimate and below Wall Street analysts’ expectations of $1.70. Ta. CVS said investors should no longer rely on its previous full-year 2024 earnings outlook (which it had already lowered multiple times) given “continued upward pressure on health care costs in the health benefits sector.” said.
