CVS Health shares surged after the company reported third-quarter earnings per share of $1.09 and revenue of $95.4 billion, both exceeding estimates. The revenue boost came from a 12% increase in the Pharmacy & Wellness division and a 25% rise in Health Care Benefits, despite a 5.9% drop in Health Services revenue. New CEO David Joyner announced executive changes, including appointing Steve Nelson from UnitedHealth Group to lead the Aetna insurance division.
CVS Health reported a 6.3% revenue increase to $95.4 billion in Q3, despite challenges in its health benefits segment led by Aetna, which faced a $924 million adjusted operating income loss. Aetna's revenues rose to $33 billion, but high medical costs and utilization pressures hindered performance. CEO David Joyner expressed optimism for recovery with new leadership in place.
CVS Health has appointed Steve Nelson, former CEO of UnitedHealthcare, as president of Aetna, and Prem Shah as group president, focusing on performance and value creation across CVS' divisions. These changes come as CVS reported a profit of $87 million for Q3, despite incurring $1.2 billion in costs related to operational streamlining. CEO David Joyner emphasized the need for improvement in Aetna while highlighting strong performance in health services and pharmacy units.
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