Shares of CVS ( CVS ) fell more than 6% following news that the pharmacy chain will replace CEO Karen Lynch with another company executive, David Joyner.
Shares are down nearly 20% this year as the company faces pressure from Glenview Capital Management, a hedge fund pushing for changes, according to the Wall Street Journal, which first reported news of Joyner’s appointment. CVS has reportedly explored strategic options, including a break-up.
David Joyner, the executive vice president of CVS Health and president of the chain’s pharmacy health service, CVS Caremark, replaced Lynch effective Thursday, CVS said. Lynch had been CEO since 2021. In an interview with the Journal, Joyner said the company would continue intact.
CVS also said in a news release Friday that it expects third-quarter adjusted earnings per share of $1.05 to $1.10, lower than the $1.70 that Wall Street analysts had forecast, 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 cut – given “continued increased pressure on medical costs in the healthcare benefits segment.”
