CVS cuts outlook, plans $2B cost-cutting effort

Category: Business

CVS Health has reduced its 2024 earnings outlook to $6.40-$6.65 per share, down from at least $7, citing ongoing pressures in the Health Care Benefits segment. The company aims to cut $2 billion in costs through a multi-year productivity initiative, focusing on AI and automation. Total revenues in health services fell 8.8% year-over-year, attributed to client losses and price improvements. CEO Karen Lynch will directly lead the health care benefits segment following the departure of Aetna's head, Brian Kane. CVS plans to close 900 stores by the end of 2024 as part of its restructuring efforts.

Keywords: CVS Health, earnings outlook, cost-cutting

Source: Fox Business

Update At: 8/8/2024

Related Sources

Weekly Outlook: Netflix and Burberry quarterly results

Netflix is set to share its second quarter results after a strong performance in the first quarter, driving shares to near $700. The company raised profit margin guidance and expects significant revenue growth. Burberry, on the other hand, faces challenges with a significant drop in sales and profits, particularly in the Chinese market.

Portfolio Adviser

Downed power lines block entrance to Roseland Waterpark, forcing closure and impacting profits

Canandaigua's Roseland Water Park is facing challenges in reopening due to downed power lines blocking the entrance after heavy storms. The park itself is relatively unscathed, but the closure is impacting profits and staff members' earnings.

WHEC.com

Australia's largest sugar maker shuts mills as workers strike

Australia's Wilmar Sugar and Renewables is closing its eight sugar mills for up to 16 hours due to a strike by unionised workers demanding a better pay deal. The shutdowns will cost sugar cane growers around $2.3 million in revenue. Wilmar, the largest sugar producer in Australia, faces disruptions in its cane crushing season due to industrial action.

The Financial Express | First Financial Daily of Bangladesh

Delta Will Now Only Allow Flight Attendants to Wear American Flag Pins in Uniform Policy Change

Delta updated its uniform policy to only allow American flag pins after a controversy involving Palestinian flag pins worn by flight attendants. The airline faced criticism for the new policy, accused of silencing workers and exacerbating harassment.

People

Delta flight attendants dispute policy change after social-media row over Palestine flag pins

Delta Air Lines flight attendants dispute the airline's change in policy for pin badges after a social-media incident involving the flag of Palestine. The airline faced backlash and changed its policy to allow only US flag pins, leading to an outcry from the Delta Association of Flight Attendants.

Business Insider

Fandango founder J. Michael Cline dies of apparent suicide at New York City luxury hotel

Founder of Fandango, J. Michael Cline, died in an apparent suicide by falling from a New York City luxury hotel. The police found him unconscious and unresponsive with injuries indicative of a fall. Cline was a serial entrepreneur, known for founding Fandango and other companies. He was passionate about wildlife conservation. He leaves behind his wife and six children.

NBC News

Fandango founder J. Michael Cline dies in fall from New York hotel

Fandango founder, a serial entrepreneur, dies in an apparent suicide by falling from a New York City hotel. He leaves behind his wife and six children.

WFTV Orlando

Kin + Carta Gains Microsoft Azure Analytics Specialization, Strengthening Customer Connections

Kin + Carta has achieved the Analytics on Microsoft Azure specialization, showcasing their expertise in delivering secure analytical solutions at an enterprise scale. This recognition enhances their market differentiation and strengthens customer connections, allowing them to leverage Microsoft tools for tailored analytics solutions. The achievement also provides access to exclusive Microsoft programs and prioritizes them in customer searches, driving new business opportunities. Kin + Carta was also recognized as a finalist in the 2024 Microsoft Americas Partner of the Year Awards, underscoring their commitment to innovation in analytics.

Datanami

Microsoft earnings eyed as AI race gathers speed – Stock Markets

Microsoft is set to announce its Q4 earnings on July 30, with expectations of a revenue increase to $64.24 billion, driven by AI investments and cloud services. However, earnings per share may show a slowdown in profitability due to increased spending on AI infrastructure. The focus will be on the performance of its Azure cloud unit and overall demand for its products, as any signs of waning demand could impact stock prices significantly.

Trending tickers: Microsoft, Netflix, Domino’s Pizza and Hargreaves Lansdown

Shares in Microsoft fell due to a global outage affecting various services, including Microsoft 365 and Azure. Users reported issues with Windows computers crashing, linked to antivirus software Crowdstrike. Netflix reported mixed results with a 16.5% increase in global paid memberships but warned of slower growth ahead. Domino's Pizza shares dropped over 13% after disappointing Q2 results and a warning of slower sales. Hargreaves Lansdown reported record assets and ongoing acquisition discussions with a private equity consortium.

AOL.com