CVS Health stock (NYSE: CVS) is up over 10% on Wednesday, November 6. The broader markets as well as the health insurance stocks are rallying after the Trump victory.
CVS Health Corp (NYSE:CVS) stock is 12% higher at $61.96 at last glance, after the pharmacy giant reported a mixed third quarter.
Although the revenue and EPS for CVS Health (CVS) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
CVS Health (CVS) came out with quarterly earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.07 per share. This compares to earnings of $2.21 per share a year ago.
CVS Health Corp (NYSE:CVS) shares jumped 10.5% pre-market in what may have been a reaction to the US presidential election results, as the drugstore and healthcare services provider reported mixed third-quarter results and failed to provide forward guidance. In the first set of numbers under new CEO David Joyner, who is thought to be leading a review of the group's options, revenues were shown to have increased 6.3% to $95.4 billion for the third quarter, better than Wall Street analysts expected.
CVS's stock surges after revenue rose well above expectations, while profit missed because of a large charge premium deficiency reserves charge.
Third-quarter adjusted earnings per share was $1.09, confirming preliminary numbers from October. A Trump victory is also seen as beneficial as it's likely to benefit Medicare Advantage players.
CVS Health reported mixed third-quarter results as higher medical costs squeezed its bottom line. The company expects elevated medical costs to continue to pressure its performance this year, "and as a result we are not providing a formal outlook at this time," a spokesperson said.
New CVS Health chief executive officer David Joyner promoted an internal executive, Prem Shah, as group president of the company and hired former UnitedHealth Group executive Steve Nelson to run Aetna, the nation's third largest health insurer.
Steve Grasso, CEO of Grasso Global, joins CNBC's 'The Exchange' to discuss outlooks on three stocks: Supermicro, Novo Nordisk, and CVS Health.
CVS Health's David Joyner is expected to address how he will better manage rising patient costs in the Medicare business than his predecessor when he tackles his first earnings call as CEO on Wednesday, particularly after rivals have shown progress on that front in recent financial reports.