CVS Stock Plummets Amid CEO Shake-up, Grim Outlook

54 minutes ago

CVS Health (CVS) stock tumbled about 8% Friday morning after the pharmacy and healthcare giant announced the replacement of Chief Executive Officer (CEO) Karen Lynch with David Joyner, a longtime company veteran who most recently ran Caremark, its pharmacy benefit manager (PBM).

Joyner is taking the top job effective immediately, CVS said, as the company has weathered a difficult year of sales at its namesake pharmacies and problems with its bets on Medicare coverage that have led it to lower its full-year outlook several times already.

In addition to the CEO swap, CVS also provided preliminary guidance for third-quarter profit, projecting earnings per share (EPS) between 3 cents and 8 cents, and adjusted EPS of $1.05 to $1.10. Analysts are expecting EPS of $1.27, and adjusted EPS of $1.69, according to consensus estimates compiled by Visible Alpha.

With Friday's losses, CVS shares have shed about 26% of their value since the start of the year.

-Aaron McDade

Netflix Stock Surges to All-Time High on Strong Earnings, Outlook

1 hr 58 min ago

Netflix (NFLX) reported third-quarter results that topped analysts’ estimates on the top and bottom lines, sending its shares soaring to a record high on Friday morning.

The streaming giant posted third-quarter revenue of $9.83 billion, up 15% from a year ago and above the analyst consensus from Visible Alpha. Net income came in at $2.36 billion or $5.40 per share, compared to $1.68 billion or $3.73 per share a year earlier, also beating projections. Total active subscribers climbed 14% to 282.72 million, just above Street expectations though the pace of growth slowed from the prior two quarters.

The company said it expects full-year revenue to grow 15% year-over-year, at the higher end of its previously announced range.

Shares of Netflix, which were up over 41% for the year through Thursday's close, rose more than 9% in early trading Friday.

-Andrew Kessel

Stock Futures Mixed as Dow Retreats From Record High

2 hr 53 min ago

Futures contracts connected to the Dow Jones Industrial Average were off about 0.2% in premarket trading on Friday.

S&P 500 futures were up 0.2%.

Nasdaq 100 futures got a boost from surging Netflix stock, rising about 0.6% Friday morning.

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1. U.S. Census Bureau. "Monthly New Residential Construction, September 2024."

2. CVS Health. "CVS Health Appoints David Joyner President and Chief Executive Officer."

3. Netflix. “Q3 24 Shareholder Letter.”

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