CVS Health's EPS beat expectations, but revenue fell short of forecasts

CVS Health Corp (NYSE:CVS) stock is 12% higher at $61.96 at last glance, after the pharmacy giant reported a mixed third quarter. Higher medical costs impacted net income, with adjusted earnings of $1.09 per share falling short of the $1.44 per share consensus estimate, but revenue of $95.43 billion was well above the $92.72 billion forecast. This was the company's first earnings report with newly appointed CEO David Joyner.

In addition to the top- and bottom-line results, CVS Health cut its full-year profit outlook for a third consecutive quarter, and revealed a $2 billion cost-cutting measure plan.

Out of the gate, CVS' normally quiet options pits are seeing 3 times the average intraday volume. Already today, 29,000 calls and 18,000 puts have exchanged hands, the most activity taking place at the November 54 put, followed distantly by the November 60 call.

This move towards bullish bets deviates from recent trends. CVS Health stock's Schaeffer's put/call open interest ratio (SOIR) ranks higher than 80% of readings from the past year. What's more, its 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits in the 82nd percentile of readings from the past 12 months.

On the charts, CVS is filling in an early October bear gap on the charts, trading at its highest level since Oct. 17. Shares just reclaimed support from their 160-day moving average, which acted as pressure for most of 2024. Still, the equity is saddled with a 21.5% year-to-date deficit.