CVS (CVS) stock fell more than 6% following news that the pharmacy chain will replace its CEO Karen Lynch with another company executive, David Joyner.
Shares are down nearly 20% this year as the company has been under pressure from Glenview Capital Management, a hedge fund pushing for changes, according to the Wall Street Journal,which first reported the news of Joyner's appointment. CVS has been reportedly reviewing strategic options that could include a breakup.
David Joyner, the EVP of CVS Health and president of the chain's pharmacy health services business, CVS Caremark, replaced Lynch as of Thursday, CVS said. Lynch had been CEO since 2021. In an interview with the Journal, Joyner said the company would move forward intact.
CVS said in a release Friday that it expects adjusted third-quarter earnings per share of $1.05 to $1.10, lower than the $1.70 forecast by Wall Street analysts, according to Bloomberg consensus estimates. CVS said investors should no longer rely on its previous full-year 2024 earnings guidance — which it has already repeatedly lowered — given "continued elevated medical cost pressures in the Health Care Benefits segment."