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Key Takeaways
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CVS stock surged Tuesday after the company said it expects to meet or exceed its previous outlook for 2025.
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This comes after the government said it will pay Medicare insurers, such as CVS' Aetna, more than previously expected.
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CVS also announced new executives, including a CFO expected to start later this month.
CVS Health (CVS) shares jumped Tuesday after the company improved its full-year outlook and named a new chief financial officer.
The pharmacy and health insurance giant said it now expects to meet or exceed its adjusted earnings projection of $5.75 to $6 per share issued in February. Analysts expect $5.89 on average, according to Visible Alpha.
CVS shares jumped over 8% in recent trading. The federal government also announced late Monday that it will pay Medicare insurers, such as CVS' Aetna, more than previously expected.
The company's shares are up about 55% year-to-date, making it the best-performing stock in the S&P 500 since the start of the year, after a difficult 2024.
Along with its improved forecast, CVS announced the appointment of a new CFO, with former UPS (UPS) CFO Brian Newman set to take over the role effective April 21. The company also named Amy Compton-Phillips, who most recently served as chief physician executive of Press Ganey, its chief medical officer, effective May 19. These shakeups follow a CEO change in October that saw CVS veteran David Joyner take the helm.
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