CVS Shares Plunge Pre-Market as Leadership Change Fails to Uplift Retail Sentiment

Shares of CVS Health plummeted as much as 13% pre-market on Friday, extending losses from Thursday after appointing a new CEO.

The healthcare provider has named longtime executive David Joyner as its new CEO, succeeding Karen Lynch, according to an official statement.

Joyner, who has served as president of CVS Caremark and executive vice president, will assume the role of president and CEO on Friday.

The leadership change comes amid continued struggles for CVS, which has repeatedly slashed its financial outlook this year due to higher-than-expected medical costs in its insurance unit and pharmacy reimbursement pressure, among other issues.

These challenges have driven the company’s stock down by 31% in 2024, prompting its board to review strategic options, including the possibility of breaking up the company.

With third-quarter results set to be released on Nov. 6, CVS is expected to miss Wall Street expectations once again, and another downgrade of its annual forecast could be on the horizon. 

If confirmed, it would mark the company’s fourth guidance cut since its investor day in December 2023. Wall Street expects earnings per share to be at $1.7 and revenue to be at $92.8 billion.

Retail sentiment on Stocktwits remained ‘bearish’ (38/100) before the bell on Friday.

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