CVS Health replaces CEO Karen Lynch with David Joyner; Q3 adjusted EPS $1.05 to $1.10
CVS Health appointed David Joyner as President and Chief Executive Officer effective October 17, 2024, replacing Karen Lynch, who also left the Board, and named Roger Farah Executive Chairman. The company also gave preliminary third quarter 2024 guidance of $0.03 to $0.08 GAAP diluted EPS and $1.05 to $1.10 Adjusted EPS, citing about $1.1 billion in premium deficiency reserve charges and about $1.2 billion in restructuring charges, and told investors not to rely on its prior guidance from August 7, 2024.
- David Joyner, previously executive vice president and president of Pharmacy Services, became CEO effective October 17, 2024; Roger Farah is Executive Chairman.
- Preliminary Q3 2024 GAAP diluted EPS of $0.03 to $0.08 and Adjusted EPS of $1.05 to $1.10.
- Premium deficiency reserve charges of about $1.1 billion lowered Q3 Adjusted EPS by $0.63; medical benefit ratio expected at about 95.2%.
- Karen Lynch will provide advisory services for six months at a $375,000 monthly fee; her non-compete extends to 30 months. Q3 earnings call is scheduled for November 6, 2024.