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CVS Appoints Shawn Guertin as CFO, Confirms 2021 Profit Guidance

Guertin, 57, will return to CVS following a two-year absence to replace the outgoing Eva Boratto as group CFO.

CVS Health  (CVS) - Get Report appointed former Aetna executive Shawn Guertin as CFO Tuesday, while confirming its 2021 profit guidance, sending shares modestly higher in pre-market trading.

CVS said Guertin an insurance and health industry veteran who left the group two years ago, will return to assume the CFO role on May 28 following the departure of Eva Boratto, who held the position for just over a decade. Guertin, 57, spent eight years as Aetna CFO before departing for "“personal and family reasons” in 2019.

CVS also reiterated its full-year profit outlook, which it published alongside stronger-than-expected first quarter earnings on May 4, with sees adjusted earnings in the region of $7.56 to $7.68 per share.

"Shawn is an extraordinary leader with a proven track record of developing financial strategies to help companies drive transformation," said CVS CEO Karen Lynch. "His deep and broad health care experience will be invaluable and I'm confident he will play an integral role as we transform CVS Health to become an even bigger part of consumers' everyday health." 

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CVS shares were marked 0.1% higher in pre-market trading Tuesday to indicate an opening bell price of $84.62 each, extending its year-to-gain to around 24%.

CVS said earlier this month that adjusted earnings for the three months ending in March were pegged at $2.04 per share, up 6.8% from the same period last year and well ahead of the Street consensus forecast of $1.72 per share. 

Group revenues, CVS said, rose 3.5% from last year to $69.1 billion, again topping analysts' estimates of a $68.4 billion tally.

Pharmacy Services revenues rose 3.8% to $36.067 billion, CVS said, Retail sales rose 2.3% to $23.274 billion, "driven by increased COVID-19 diagnostic testing and vaccinations and brand inflation". The group's healthcare benefits division saw sales rise 7.5% to $18.94 billion as it added Aetna's operations to its legacy business.