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Summary
- The stock of CVS Health hit a 52-week high of US$89.64 on Tuesday.
- Shawn Guertin to replace Eva Boratto to become the company’s new finance chief.
- CVS Health also reaffirmed its recently upgraded outlook for full-year 2021 earnings.
The stock of CVS Health Corp (NYSE:CVS) has been drawing renewed attention from investors. The stock jumped as much as 4.8 percent on Tuesday and rallied to its 52-week high of US$89.64.
The scrip was trading at US$89.0, up 0.47%, from the previous close, at 2:24 pm ET on Wednesday, May 19.
Tuesday’s surge came after the company appointed a new chief finance officer and reaffirmed its recently improved forecast for full-year 2021.
CVS Health is a Rhode Island-based pharmacy and healthcare company. It owns the pharmacy chain CVS Pharmacy, the prescription benefit management unit CVS Caremark, and health insurance provider Aetna.
The company has a market cap of US$11.66 billion. The stock is up over 29 percent year to date, while it grew around 38 percent during the last one-year period.
CVS Health Appoints New CFO
CVS Health has appointed Shawn Guertin as its new executive vice president and CFO. Guertin was a former executive vice president, CFO, and chief enterprise risk officer at Aetna, which merged with CVS Health in 2018.
Guertin served Aetna for eight years and played a key role in its merger with CVS Health, the company said in a statement. In his new role, Guertin will replace Eva Boratto, who will step down from the company.
Guertin’s appointment is effective on May 28, 2021, and he will report to CVS Health President and CEO Karen Lynch, who assumed the role in February.
Source: Pixabay
Reaffirms FY’21 Outlook
CVS Health also reaffirmed its guidance for full-year 2021, which it recently upgraded following strong first-quarter results.
The company anticipates its adjusted EPS to be between US$7.56 and US$7.68 during the year, while the GAAP diluted EPS is expected in the range of US$6.24 to US$6.36.
CVS Health had reported an adjusted EPS of US$2.04 for the first quarter, which grew 6.8 percent year over year.
The GAAP diluted EPS also increased 9.8 percent during the three months to US$1.68 as revenue grew 3.5 percent year over year to US$69.10 billion.
CVS Health also continues to expect its cash flow from operations during the full-year 2021 to be between US$12 billion and US$12.5 billion.
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