CVS Health Corp stock.
CVS,
rose 5% in pre-market trading Wednesday, after the company announced a $5 billion settlement in opioid claims and third-quarter earnings beat estimates. The company posted a loss of $3.409 billion, or $2.60 a share, in the third quarter, after earnings of $1.587 billion, or $1.20 a share, in the year-earlier period. before. Adjusted for settlement, the drugstore chain had an EPS of $2.09, ahead of the $2.00 FactSet consensus. Revenue rose to $81.159 billion from $73.794 billion a year ago, well ahead of FactSet consensus of $76.740 billion. The profit figure is also weighed against a $2.5 billion loss on assets sold to record the company’s long-term care business in the current year, partially offset by a lack of $431 million in residual goodwill charges of the unit LTC during the previous year. “We continue to execute on our strategy with a focus on expanding our healthcare delivery capabilities, and the announced acquisition of Signify Health further strengthens our engagement with consumers.” consumption,” Chief Executive Officer Karen S. Lynch said in a statement. CVS is now expecting full-year EPS of $3.12 to $3.22, down from its previous guidance of $7.23 to $7.43, mainly due to the opioid settlement. However, adjusted EPS is expected to range from $8.55 to $8.65, up from the previous guidance of $8.40 to $8.60. As of now, the stock is down 8% for the year, while the S&P 500
SPX,
fell 19%.
