{"id":262406,"date":"2025-10-31T07:29:16","date_gmt":"2025-10-31T07:29:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/262406\/"},"modified":"2025-10-31T07:29:16","modified_gmt":"2025-10-31T07:29:16","slug":"cvs-health-stock-feels-the-heat-as-5-7b-write-down-weighs-on-record-q3","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/262406\/","title":{"rendered":"CVS Health Stock Feels the Heat as $5.7B Write-Down Weighs on \u2018Record\u2019 Q3"},"content":{"rendered":"

Shares of retail pharmacy chain CVS Health (CVS)<\/a> ended Wednesday trading on a sad note<\/a> as the company\u2019s $5.7 billion goodwill impairment charge overshadowed its Wall Street-beating third-quarter results<\/a>. CVS stock is also trading lower during pre-market on Thursday.<\/p>\n

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Goodwill usually represents what a company paid above the fair value for activities such as acquisitions. The charge means that the company no longer sees the \u201cgoodwill\u201d on its balance sheet as worth as much as previously thought.<\/p>\n

Why the Write-Down?<\/p>\n

The charge recognized by CVS Health came from its healthcare delivery segment. Specifically, it came from its businesses such as MinuteClinic, its walk-in and appointment-based care retail clinics for minor health cases, Oak Street Health, its primary care centers for older adults, and Signify Health, which is focused on in-home healthcare delivery. <\/p>\n

More importantly, the charge stemmed from the cost of restructuring Oak Street and due to Signify Health\u2019s lower market value, among others. Both services focus on the U.S. government-backed Medicare programs.<\/p>\n

On Wednesday, CVS stock dropped by nearly 2%<\/a> to $80.60 per share at the end of regular trading. It also fell by over 2% to $78.88 during early trading on Thursday.<\/p>\n

CVS Health Revenue Reaches \u2018Record High\u2019<\/p>\n

Despite the impairment charge, CVS Health hit \u201ca record high\u201d of $102.9 billion<\/a>, up 7.8% year-over-year and exceeding Wall Street\u2019s predicted $98.81 billion. It also reported adjusted earnings of $1.60 per share, surpassing analysts\u2019 $1.37 and growing 18% from the same period last year.<\/p>\n

This is even as the company\u2019s Caremark division saw \u201canother strong selling season,\u201d generating almost $6 billion during the quarter. The division manages prescription drug benefits for employers, health plans, and government agencies. <\/p>\n

Furthermore, the solid results come despite CVS Health\u2019s Omnicare subsidiary\u2019s\u00a0ongoing Chapter 11 bankruptcy proceedings<\/a>\u00a0in Texas and recent $949 million<\/a> penalty payment ordered by a U.S. district court after it was found liable for fraudulently billing the U.S. government over several years for medications that were wrongfully prescribed.<\/p>\n

CVS Health Expands Business<\/p>\n

Looking towards its full fiscal year, CVS Health remains upbeat, raising its earnings guidance. Meanwhile, the healthcare group grew its footprint across the U.S<\/a>., taking over 63 stores previously owned by Rite Aid and Bartell Drugs. Control of the stores, which are in Idaho, Oregon, and Washington, will enable CVS Health to reach over nine million former customers of the two pharmacy chains.<\/p>\n

Is CVS Stock a Good Buy?<\/p>\n

On Wall Street,\u00a0CVS Health\u2019s shares<\/a>\u00a0currently boast a Strong Buy rating from analysts, TipRanks data shows. This is based on 18 Buys and one Hold issued by 19 analysts over the past three months.<\/p>\n

Moreover,\u00a0the average CVS price target<\/a>\u00a0of $87.50 indicates about 9% upside from the current trading level. Year to date, CVS stock has ballooned nearly 90%<\/a>, hitting $80.59 per share in after-hours trading on Wednesday.<\/p>\n

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See more CVS analyst ratings here. <\/a><\/p>\n

Disclaimer & Disclosure<\/a>Report an Issue<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Shares of retail pharmacy chain CVS Health (CVS) ended Wednesday trading on a sad note as the company\u2019s…\n","protected":false},"author":2,"featured_media":262407,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[97,252,253],"class_list":["post-262406","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-health","tag-health-care","tag-healthcare"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/262406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=262406"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/262406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/262407"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=262406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=262406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=262406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}