In this article CVS Follow your favorite stocks CREATE FREE ACCOUNT The CVS pharmacy logo is displayed on a sign above a CVS Health Corp. store in Las Vegas, Nevada on Feb. 7, 2024.
Patrick T. Fallon | AFP | Getty Images CVS Health on Wednesday reported second-quarter earnings that topped expectations, but slashed its full-year profit outlook, citing higher medical costs that have been squeezing the U.S.
insurance industry. The company also said Aetna President Brian Kane, the top executive at the insurance unit, will leave the company. CVS CEO Karen Lynch will take over management of the business and CFO Thomas Cowhey will also help to oversee it.
The retail drugstore chain expects 2024 adjusted earnings of $6.40 to $6.65 per share, down from a previous guidance of at least $7 per share.
Analysts surveyed by LSEG were expecting full-year adjusted profit of $6.97 per share. CVS also cut its unadjusted earnings guidance to a range of $4.
95 to $5.20 per share, down from at least $5.64 per share.
It marks the third consecutive quarter that the company has lowered its 2024 profit guidance . CVS said its new outlook reflects continued pressure on its health insurance segment, which is seeing increased medical costs and the "unfavorable impact" of the company's Medicare Advantage star ratings. Those ratings help Medicare patients compare the quality of Medicare health and drug plans.
CVS owns health insurer Aetna. The company's insurance division includes plans by Aetna for the Aff.