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CVS Health announced on Monday that it struck a deal with dissident investor Glenview Capital for four board seats, just a few weeks after the healthcare giant ousted former chief Karen Lynch. Glenview CEO Larry Robbins will join the CVS board effective immediately, alongside three other directors, which CVS said emerged from a "productive discussion" with Glenview. CVS' board will expand to 16 members. Glenview amassed a sizable stake in the healthcare conglomerate and worked with management in the lead-up to Lynch's ouster. Elliott Management struck a deal with Southwest Airlines in October in which the activist fund secured six seats on the carrier's board.
Persons: David Joyner, Karen Lynch, Larry Robbins, Roger Farah, Leslie Norwalk, Guy Sansone, Doug Schulman, Glenview's Robbins, Ancora, Alan Shaw Organizations: CVS, Health, Education, Labor, Washington , D.C, CVS Health, Glenview Capital, Glenview, Elliott Management, Southwest Airlines, Norfolk Locations: Washington ,, Glenview, Norfolk Southern
CVS Health on Wednesday reported mixed third-quarter results as higher medical costs squeezed its bottom line. The earnings report is CEO David Joyner's first at the helm of the troubled retail drugstore chain. CVS will provide commentary on what it expects "directionally" during its earnings call, the spokesperson said. "Establishing credibility and earning the trust of our investors is one of my top priorities as the new leader of CVS Health," Joyner said in a statement. CVS expects those premium deficiency reserves "to be substantially released" during the fourth quarter, which will benefit results in that period.
Persons: David Joyner's, Joyner, " Joyner, Steve Nelson, Nelson, Prem Shah, Karen Lynch Organizations: CVS Health, CNBC, CVS, Aetna, UnitedHealth, LSEG
Artificial intelligence plays Palantir, Qualcomm and Super Micro Computer are among the 96 S & P 500 names on deck. Monday Palantir is set to report earnings after the bell, with a call scheduled for 5 p.m. This quarter: Earnings are expected to have soared more than 20% from the year-earlier period, per LSEG. Tuesday Super Micro Computer is set to report earnings after the close, followed by a call at 5 p.m. Qualcomm is set to report earnings after the close, with a call set for 4:45 p.m.
Persons: PLTR, SMCI, Ernst & Young, TD Cowen, Andrew Charles doesn't, Karen Lynch, David Joyner, Ross Seymore Organizations: Qualcomm, Apple, Microsoft, Meta, Investment, LSEG, Micro, Yum Brands, Brands, CVS, Revenue, VanEck Semiconductor, Deutsche Bank
New York CNN —Listen up, corporate boards: If you’re looking for the biggest trend in leadership this fall, look no further. Corporate America’s hottest CEO pick is a classic model — the Middle Aged White Guy. Just 52 businesses in the 2024 Fortune 500 ranking were run by women, holding flat from the year before. Obviously, White Guy CEO never went out of fashion — women have rarely represented more than 10% of Fortune 500 companies. But a rash of recent leadership shakeups illustrates the enduring power of the White Guy as a kind of capsule wardrobe for corporate leadership.
Persons: CNN Business ’, Guy, White Guy, Karen Lynch, David Joyner, Lynch, Laxman Narasimhan, Brian Niccol, Mellody Hobson, UnderArmour, Stephanie Linnartz, Kevin Plank, Disney’s Bob Iger, Disney, Morgan Stanley, James Gorman, that’s Iger, Gorman, Nathaniel Meyersohn Organizations: CNN Business, New York CNN, Corporate, Fortune, CVS, America, Indian, McKinsey Locations: New York, Niccol
CVS replaces CEO as profits, share price suffer
  + stars: | 2024-10-18 | by ( Jacob Pramuk | Sara Salinas | ) www.nbcnews.com   time to read: +2 min
Longtime CVS Health executive David Joyner has replaced Karen Lynch as CEO, as the company struggles to drive higher profits and stock performance, CVS announced Friday. CVS has faced challenges as higher medical costs weigh on its insurance unit, Aetna, and consumer spending drops at its retail pharmacies. It anticipates higher medical costs than previously expected, with a so-called medical benefit ratio of 95.2% in the quarter. CNBC reported last month that CVS’ board had engaged strategic advisors to weigh its options, including the potential of a breakup of its insurance and retail businesses. Lynch also stepped down from the company’s board of directors this week, the company said Friday.
Persons: David Joyner, Karen Lynch, CVS, ” CVS, Joyner, Lynch, , David, Roger Farah, Farah Organizations: CVS, Aetna, Glenview Capital, CNBC, CVS Health
The household goods maker posted $21.74 billion in revenue while analysts polled by LSEG had estimated $21.91 billion. WD-40 — The maintenance product maker's shares fell 4% after a disappointing fiscal fourth-quarter earnings report. Despite posting a top-line beat of $823 million in revenue versus LSEG analysts' estimates for $808 million, net interest income fell 3% in the third-quarter. Revenue of $9.16 billion fell below the $9.25 billion LSEG consensus forecast. Ally Financial – The digital bank stock fell nearly 1% despite earnings beating analysts' estimates in the third quarter.
Persons: Gamble, LSEG, David Joyner, Karen Lynch, B.Riley, SLB, Schlumberger, FactSet, — CNBC's Pia Singh, Sarah Min, Jesse Pound, Michelle Fox Organizations: Procter, Netflix, CVS, FactSet, Western Alliance Bancorp, Apple, Bloomberg, Crown Holdings, Holdings, Comerica Locations: China
A general view shows a sign of CVS Health Customer Support Center in CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023. Longtime CVS Health executive David Joyner has replaced Karen Lynch as CEO, as the company struggles to drive higher profits and stock performance, CVS announced Friday. The move, effective Thursday, comes as CVS shares have fallen nearly 20% this year. CVS has faced challenges as higher medical costs weigh on its insurance unit, Aetna, and consumer spending drops at its retail pharmacies. It anticipates higher medical costs than previously expected, with a so-called medical benefit ratio of 95.2% in the quarter.
Persons: David Joyner, Karen Lynch, CVS Organizations: CVS, CVS Health Corp, Aetna Locations: Woonsocket , Rhode Island, U.S
CNN —America’s largest drug store chain named a new chief executive officer on Friday, with longtime CVS Health executive David Joyner replacing Karen Lynch. In August, rising costs at CVS’ insurance arm Aetna cut into profits, leading to the ousting of then-president Brian Kane. Charles Krupa/AP/FileLower reimbursement rates for prescription drugs have hit retail pharmacies, including Walgreens and Rite-Aid, resulting in flagging profits and forcing drug stores to shutter locations and cut jobs. Meanwhile, rival chain Walgreens is closing 1,200 stores as it faces competition from online pharmacies and larger retailers — another challenge facing drug stores. Our results need to show that more consistently,” a CVS Health spokesperson told CNN in a statement.
Persons: CNN —, David Joyner, Karen Lynch, Brian Kane, Lynch, ” Julie Utterback, Charles Krupa, Joyner, David, Roger Farah Organizations: CNN, CVS Health, CVS, Aetna, Federal Trade Commission, Morningstar, Boston College's, Club, Walgreens, Rite, Locations: Boston
Separately, CVS issued third-quarter adjusted earnings guidance between $1.05 and $1.10 per share, far weaker than the FactSet consensus estimate of $1.69 a share. MGP Ingredients — Shares tumbled 26% after MGP Ingredients, a distilled spirits producer, issued preliminary third-quarter earnings and revenue guidance that missed expectations. Earnings of $1.23 per share missed the FactSet consensus estimate of $1.34 in earnings per share. Comerica reported $1.33 in earnings per share, compared to $1.17 per share expected by analysts, according to FactSet. Still, adjusted earnings of 89 cents per share beat the expected earnings per share of 88 cents.
Persons: Lamb Weston —, Jana Partners, Lamb Weston, David Joyner, Karen Lynch, LSEG, LSEG ., Riley, Ally, FactSet, — CNBC's Sean Conlon, Michelle Fox, Alex Harring, Hakyung Kim, Jesse Pound Organizations: Netflix, U.S . Cellular, Telephone, Data Systems, U.S, Cellular, Verizon Communications, CVS, MGP, American, Apple —, Bloomberg, Counterpoint Research, Western, Western Alliance, LSEG, LSEG . Fifth Third, Fifth Third Bancorp, Comerica, Holdings Locations: U.S, China
It’s time for a wellness check at CVS Health. But Caremark, in some cases, also funnels drug prescriptions to CVS retail pharmacies, he said. He said a spinoff of CVS’ retail pharmacies would be more likely. A general view shows a sign of CVS Health Customer Support Center in CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023. Those actions will help the company achieve its target of 100- to 200-basis-points margin improvement in its Medicare Advantage business, CVS executives said in August.
Persons: Caremark, , eMarketer, Rajiv Leventhal, Karen Lynch, Lynch, Brian Kane, , ” Jefferies, Brian Tanquilut, Elizabeth Anderson, Anderson, it’s, eMarketer’s Leventhal, ” Tanquilut, Ann Hynes, Tanquilut, “ they’re, they’re, Michael Cherny, Cherny, Faith Ninivaggi, Reuters Cherny, CVS, Tom Cowhey Organizations: CVS Health, CVS, CNBC, Aetna, Monday, Glenview Capital, Glenview, Evercore ISI, UnitedHealth, Humana, Walgreens, Street Health, Oak, Health, Mizuho, Amazon, Walmart, Oak Street, Leerink Partners, Affordable, Medicare, CVS Health Corp, Reuters, Centers, Medicaid Services Locations: U.S, Caremark, Aetna, Texas and Illinois, Woonsocket , Rhode Island
In this article CVS Follow your favorite stocks CREATE FREE ACCOUNTA sign outside of a CVS pharmacy store on February 07, 2024 in Miami, Florida. That means Caremark also sits at the intersection of CVS' retail pharmacy operation and its Aetna insurer, boosting the competitive advantage of both of the businesses. A workers stocks the shelves in a CVS pharmacy store on February 07, 2024 in Miami, Florida. An Oak Street Health clinic stands in a Brooklyn neighborhood on February 08, 2023 in New York City. A general view shows a sign of CVS Health Customer Support Center in CVS headquarters of CVS Health Corp in Woonsocket, Rhode Island, U.S. October 30, 2023.
Persons: Joe Raedle, Caremark, Rajiv Leventhal, Karen Lynch, Lynch, Brian Kane, Jefferies, Brian Tanquilut, Elizabeth Anderson, Anderson, it's, eMarketer's Leventhal, Tanquilut, Ann Hynes, Spencer Platt, they're, Michael Cherny, Cherny, Faith Ninivaggi Organizations: Getty, CVS Health, CVS, CNBC, Aetna, Monday, Glenview Capital, Glenview, UnitedHealth, Humana, Walgreens, Street Health, Oak, Health, Mizuho, Oak Street Health, Amazon, Walmart, Oak Street, Leerink Partners, Affordable, Medicare, CVS Health Corp Locations: Miami , Florida, U.S, Aetna, Caremark, Brooklyn, New York City, Texas and Illinois, Woonsocket , Rhode Island
CVS Health 's board has engaged advisors to conduct a strategic review of its business, according to people familiar with the matter, as the company contends with potential activist pressure and a severely depressed stock price. The review has been ongoing for some time, said the people, but there is no certainty on what actions, if any, the company will take. CVS management, including CEO Karen Lynch, met with major shareholder Glenview Capital Monday to discuss the company's lagging prospects and Glenview's plans to revive the stock, CNBC previously reported. In a statement, CVS spokesman David Whitrap told CNBC: "CVS Health's management team and Board of Directors are continually exploring ways to create shareholder value. CVS shares rose around 2.5% in after-hours trading Monday on the news, which was first reported by Reuters.
Persons: Karen Lynch, Lynch, David Whitrap, Brian Kane, , Bertha Coombs Organizations: Washington DC, CVS, Glenview Capital, CNBC, Reuters Locations: Washington, United States
Glenview Capital, a major CVS Health shareholder, is expected to meet with company leadership on Monday to lay out proposed fixes for the struggling business, according to people familiar with the matter, a potential precursor to an activist push. A CVS spokesperson said the company "maintains a regular dialogue with the investment community as part of our robust shareholder and analyst engagement program." Jeff Smith's Starboard Value also built a stake in the company in 2019, and engaged in discussion with the company's leadership as well. The company's insurance unit includes plans by Aetna for the Affordable Care Act, Medicare Advantage and Medicaid, along with dental and vision. In its second-quarter results in August, CVS announced a leadership shakeup based on the performance and outlook of its insurance unit.
Persons: Karen Lynch, Scott Ferguson, Jeff Smith's, Lynch, Brian Kane Organizations: Glenview, CVS Health, CVS, Teva Pharmaceuticals, Street Journal, Sachem, Capital Management, Aetna, American Medical Association, Affordable, Medicare Locations: Florida Keys, United States, Centene, Glenview
The CVS pharmacy logo is displayed on a sign above a CVS Health Corp. store in Las Vegas, Nevada on Feb. 7, 2024. CVS Health on Wednesday slashed its full-year profit outlook again and announced a new plan to cut $2 billion in expenses over several years as higher medical costs squeeze the company and the broader U.S. insurance industry. CVS also cut its unadjusted earnings guidance to a range of $4.95 to $5.20 per share, down from at least $5.64 per share. Those ratings help Medicare patients compare the quality of Medicare health and drug plans. Medicare Advantage, a privately run health insurance plan contracted by the federal Medicare program, has long been a driver of growth and profits for the insurance industry.
Persons: Brian Kane, Karen Lynch, Thomas Cowhey, Katerina Guerraz, Lynch, LSEG, CVS, Cowhey, Caremark Organizations: CVS Health Corp, CVS Health, Aetna, CVS, Affordable, Medicare, UnitedHealth, Humana, Elevance, LSEG Locations: Las Vegas , Nevada
Strong leadership requires decisive action, says CVS Health CEO Karen Lynch. "People are going to follow people that are decisive," said Lynch, whose company owns brands including the CVS retail pharmacy chain and insurance company Aetna. "If you're going to lead, you've got to know what direction you're going in." When her employees face a mental block and can't commit to a choice, she asks them a variation of the same question, she said: "What do you think? We'll teach you how to speak clearly and confidently, calm your nerves, what to say and not say, and body language techniques to make a great first impression.
Persons: Karen Lynch, Lynch, LinkedIn's, you've, " Lynch, Socrates, Tamar Gendler, Gendler, Jeff Bezos, Nicholas Lovejoy, Amazon's, Jeff, Lovejoy Organizations: CVS, Aetna, Yale University, Wired, CNBC
Karen Lynch, the CEO of CVS Health, has a tip for striking the right balance: Share whatever directly helps you solve a problem or connect with someone else. Early in her tenure, she ran a company-wide town hall urging managers to take mental health more seriously. In an unplanned moment, she shared something she'd never told another colleague before, she said: When she was 12, her mother committed suicide. She also felt ashamed, anxious and embarrassed about it, so she spent much of her career being strictly about business, she said. But midway through the town hall, with 50,000 employees listening, Lynch realized she could help her co-workers understand why she felt so strongly about mental health.
Persons: Karen Lynch, Lynch, LinkedIn's, she'd, She'd Organizations: CVS Health, Aetna
CVS Health on Wednesday reported first-quarter revenue and adjusted earnings that missed expectations and slashed its full-year profit outlook, citing higher medical costs that are dogging the U.S. insurance industry. The drugstore chain expects 2024 adjusted earnings of at least $7 per share, down from a previous guidance of at least $8.30 per share. The company said its new outlook assumes that higher medical costs in its insurance business during the first quarter will persist throughout the year. Medicare Advantage, a privately run health insurance plan contracted by Medicare, has long been a key source of growth and profits for the insurance industry. Excluding certain items, such as amortization of intangible assets and capital losses, adjusted earnings per share were $1.31 for the quarter.
Persons: LSEG, Karen Lynch, Caremark, Tyson Foods, CVS's Caremark, Cuban's Organizations: CVS Health, CVS, Aetna, UnitedHealth, Medicare, LSEG, Blue, Amazon Pharmacy, Oak Street Health Locations: California
"I think you should still buy Baba in light of the fact the Chinese government is panicking about their stocks," Jim Cramer said, referencing recent stimulus efforts in the country . CVS Health : Despite lowering its 2024 adjusted earnings outlook due to higher medical costs, shares of CVS Health climbed more than 3% Wednesday. "Aetna is better than people think, and I think that [CEO] Karen Lynch is better than people think," Jim said. New York Community Bancorp : Moody's Investor Service downgraded the regional bank's credit rating to junk, roughly a week after NYCB reported a surprise fourth-quarter loss and cut its dividend payout. However, "you can't boost confidence once you cut your dividend," Jim said, adding that "you can't buy" shares of NYCB right now.
Persons: Jim Cramer, Aetna, Karen Lynch, Jim, NYCB, Morgan Stanley, Uber, Roblox Organizations: CVS, CVS Health, Aetna, York Community Bancorp, Moody's Investor Service, CNBC, Club, Technologies Locations: Wells Fargo
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with CVS Health CEO Karen Lynch on drug pricesKaren Lynch, CVS Health CEO, and CNBC’s Bertha Coombs join 'The Exchange' to discuss the company's investor day, prescription drug pricing, and more.
Persons: Karen Lynch, Bertha Coombs Organizations: CVS
CVS Health on Tuesday said it will revamp how it prices prescription drugs and scrap a complex model that typically sets how much pharmacies get reimbursed and what patients pay for those medications. CVS' new model could change the cost of prescription drugs for some patients, but it will not necessarily make all medicine cost less, company executives said. Lynch told CNBC: "It's a cost plus markup, plus a fee. Billionaire Mark Cuban last year launched an online pharmacy that takes a similar approach to CVS' new reimbursement model. The company, called Cost Plus Drugs, aims to drive down the price of medicines broadly by selling them at a set 15% markup over their cost, plus pharmacy fees.
Persons: Karen Lynch, Lynch, Prem Shah, markups, Billionaire Mark Cuban, Cuban Organizations: CVS Health, CVS, CNBC, Billionaire
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCVS Health CEO Karen Lynch: We're committed to lowering the total cost of health careKaren Lynch, CVS Health CEO, and CNBC’s Bertha Coombs join 'The Exchange' to discuss the company's investor day, prescription drug pricing, and more.
Persons: Karen Lynch, We're, Bertha Coombs Organizations: CVS
The best long-term dividend growth strategy is to buy stocks that offer a combination of high dividend growth and high free cash flow yield, the strategist said. Here are 10 names that Wolfe likes for their high dividend growth and free cash flow yields. NXP Semiconductors, for instance, has a 2% dividend yield and last 12 months dividend growth of 32%. It has a 6% estimated free cash flow yield for 2024. Meanwhile, Qualcomm has a 6% estimated free cash flow yield for 2024 and 9% last 12 months dividend growth.
Persons: Chris Senyek, Wolfe, Karen Lynch, Kroger, — CNBC's Michael Bloom Organizations: Wolfe Research, CVS, CNBC, NXP Semiconductors, Skyworks Solutions, Qualcomm Locations: U.S
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCVS Health CEO: The consumer is acting with some caution, but no dramatic change in behaviorCVS Health CEO Karen Lynch joins 'Squawk on the Street' to discuss the company's retail pharmacy business, the healthcare giant's PBM business, and more.
Persons: Karen Lynch Organizations: CVS
Watch CNBC's full interview with CVS Health CEO Karen Lynch
  + stars: | 2023-11-08 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with CVS Health CEO Karen LynchCVS Health CEO Karen Lynch joins 'Squawk on the Street' to discuss the company's retail pharmacy business, the healthcare giant's PBM business, and more.
Persons: Karen Lynch Organizations: CVS
Cramer's Lightning Round: Enbridge is a buy
  + stars: | 2023-09-12 | by ( Julie Coleman | ) www.cnbc.com   time to read: +1 min
Stock Chart Icon Stock chart icon Magellan's year-to-date stock performance. Stock Chart Icon Stock chart icon Edwards Lifesciences' year-to-date stock performance. Stock Chart Icon Stock chart icon International Flavors & Fragrances' year-to-date stock performance. I have no idea what's happening, why it's just completely falling apart..."Stock Chart Icon Stock chart icon CVS's year-to-date stock performance. Stock Chart Icon Stock chart icon Honeywell's year-to-date stock performance.
Persons: It's, Edwards Lifesciences, Edwards, it's, Karen Lynch, IT's, that's what's, Morgan Stanley, I'm Organizations: Honeywell, Laguna, Charitable
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