CVS Health reported stronger-than-expected earnings driven by exiting the ACA marketplace and raising insurance premiums.
CVS Health shares climbed after the company posted quarterly earnings that exceeded analyst estimates. The beat was attributed to its decision to exit the Affordable Care Act marketplace and implement higher insurance premiums, boosting profitability.
Prior to the report, consensus estimates had projected softer results amid broader sector challenges. The company’s insurance segment outperformed, offsetting weaker performance in other divisions. Comparable quarterly figures showed modest growth in premium revenue.
Markets reacted positively, with CVS stock rising in pre-market trading as investors focused on the improved outlook for its healthcare services unit.