In the course of the management change, the company also published preliminary financial figures for the third quarter. CVS Health expects GAAP earnings per share (EPS) between $0.03 and $0.08 and adjusted EPS of $1.05 to $1.10. This guidance includes a charge of $1.1 billion for premium deficiency reserves, primarily from the Medicare and Individual Exchange businesses, which reduced adjusted EPS by $0.63. Most of these reserves are expected to be released in the fourth quarter, which should have a positive impact on future results.
In addition, CVS Health recorded restructuring charges of approximately $1.2 billion due to planned store closures for 2025 and cost reduction measures. The Medical Benefit Ratio for the quarter is expected to be approximately 95.2%, including a 220 basis point impact from premium deficiency reserves. Investors are cautioned not to rely on the guidance released on August 7, 2024 as increased medical cost burdens continue to exist. Further updates are expected in the upcoming quarterly results conference call on 06.11.2024.
In addition, CVS Health recorded restructuring charges of approximately $1.2 billion due to planned store closures for 2025 and cost reduction measures. The Medical Benefit Ratio for the quarter is expected to be approximately 95.2%, including a 220 basis point impact from premium deficiency reserves. Investors are cautioned not to rely on the guidance released on August 7, 2024 as increased medical cost burdens continue to exist. Further updates are expected in the upcoming quarterly results conference call on 06.11.2024.
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•They want to close 220-250 stores, I read that on their website today.
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