|Day's Range||5.90 - 5.90|
Bernard Tyson, Kaiser Permanente CEO & Steven Van Kuiken, McKinsey Senior Partner at Yahoo Finance All Markets Summit: Generational Opportunities.
How Bernard Tyson, CEO of Kaiser Permanente, says his California-based insurer is dealing with the power outages in the state.
Bernard Tyson, Kaiser Permanente CEO, and Steven Van Kuiken, McKinsey Senior Partner, discuss how government can improve the health care system in the US.
In a conversation with Yahoo Finance, Bernard Tyson, Kaiser Permanente CEO, and Steven Van Kuiken, McKinsey Senior Partner, talk about how innovation is rapidly improving health outcomes and making the health care system more efficient.
Abbott Laboratories said Wednesday that Chief Executive Miles White will step down on March 31, 2020, after 21 years in the role. White, who joined Abbott in 1984, will remain executive chairman. The healthcare company said Robert Ford, who has been chief operating officer since October 2018 and a 23-year Abbott veteran, will succeed White as CEO. Abbott's stock slipped 0.3% in premarket trading. It has rallied 21.4% over the past 12 months through Tuesday, while the SPDR Health Care Select Sector ETF has gained 4.7% and the S&P 500 has advanced 13.6%.
Thermo Fisher Scientific Inc. announced Friday a new $2.5 billion stock repurchase program, with no expiration date. The analytical instruments and patient diagnostics company's new program replaces the current authorization, which had $500 million remaining. Based on Thursday's stock closing price of $293.54, the new program would allow for the repurchase of up to 8.5 million shares, or about 2.1% of the shares outstanding. The stock rose 0.3% in premarket trading. It has run up 31.2% year to date through Thursday, while the SPDR Health Care Select Sector ETF has gained 9.2% and the S&P 500 has rallied 23.1%.
Shares of Humana Inc. rallied 2.1% in premarket trading Wednesday, after the health care services company reported third-quarter profit and revenue that beat expectations, and provided an upbeat outlook. Net income was $888 million, or $5.14 a share, compared with $901 million, or $4.65 a share, in the year ago period. Excluding non-recurring items, adjusted EPS rose to $5.03 from $4.58, above the FactSet consensus of $4.58. Revenue rose to $16.24 billion from $14.21 billion, to beat the FactSet consensus of $16.15 billion, boosted by strength in its Medicare Advantage and healthcare services businesses. For 2019, Humana raised its adjusted EPS guidance to "approximately" $17.75, which is above the FactSet consensus of $17.64, and its expected individual Medicare Advantage membership growth outlook to about 530,000 members from the previous range of 480,000 to 500,000 members. The stock has gained 2.9% year to date through Tuesday, while the S&P 500 has rallied 22.7%.
Elizabeth Warren on Friday explains how she proposes to pay for her “Medicare for All” plan, after drawing criticism from her primary opponents for refusing to say whether her plan would raise taxes on the middle class.
The SPDR Healthcare Sector fund ETF (XLV) has been the best performing sector ETF in the last month with a 4.65% return. This earnings season has been relatively positive for Healthcare stocks.
AbbVie Inc. reported Friday a third-quarter adjusted profit and revenue that rose above expectations, helped by strength in its immunology and oncology business segments, and raised its earnings outlook. The stock slipped 0.4% in premarket trading. The company also raised its quarter dividend by 10% to $1.18 a share from $1.07 a share. Net income fell to $1.88 billion, or $1.26 a share, from $2.75 billion, or $1.81 a share, in the year-ago period. Excluding non-recurring items, such as an impairment charge, adjusted EPS rose to $2.33 from $2.14, above the FactSet consensus of $2.30. Revenue grew 3.0% to $8.48 billion, topping the FactSet consensus of $8.38 billion. Among AbbVie's best selling drugs, Humira revenue grew 3.7% to $4.94 billion to beat the FactSet consensus of $4.89 billion and Imbruvica revenue increased 29% to $1.26 billion, above expectations of $1.19 billion. AbbVie raised its 2019 adjusted EPS guidance range to $8.90 to $8.92 from $8.82 to $8.92. The new dividend will be payable Feb. 14 to shareholders of record on Jan. 15. Based on Thursday's stock closing price of $79.55, the new annual dividend rate implies a dividend yield of 5.93%, compared with the yield for the SPDR Health Care Select Sector ETF of 1.58% and the implied yield for the S&P 500 of 1.95%.
McKesson Corp. reported Wednesday a fiscal second-quarter profit that matched expectations while revenue rose well above expectations, amid strength in its U.S. pharmaceutical and specialty solutions business. The stock was still inactive in premarket trading. For the quarter to Sept. 30, the health care and drug company swung to net loss of $730 million, or $3.99 a share, from income of $499 million, or $2.52 a share, in the year-ago period. Excluding non-recurring items, such as a $1.4 billion charge related to an impairment with the planned exit of its investment in Change Healthcare, adjusted EPS came to $3.60, which matched the FactSet consensus. Revenue rose 9% to $57.62 billion, above the FactSet consensus of $55.08 billion. U.S. pharmaceutical and specialty solutions revenue grew 10% to $46.0 billion, primarily because of price increases in branded pharmaceuticals and increased specialty pharmaceutical volume. European pharmaceutical revenue fell 1% to $6.6 billion and medical-surgical revenue increased 6% to $2.1 billion. The company affirmed its fiscal 2020 adjusted EPS guidance range of $14.00 to $14.60, which surrounds the FactSet consensus of $14.38. The stock has rallied 35.2% year to date, while the SPDR Health Care Select Sector ETF has advanced 9.0% and the S&P 500 has gained 21.1%.
Shares of Merck & Co. Inc. rallied 2.2% in premarket trading Tuesday, after the health care company reported a third-quarter profit and revenue that rose above expectations, and lifted its full-year outlook. Net income was $1.90 billion, or 74 cents a share, after $1.95 billion, or 73 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS rose to $1.51 from $1.19, beating the FactSet consensus of $1.24. Sales grew 15% to $12.40 billion, above the FactSet consensus of $11.64 billion, as sales of its top-selling cancer treatment Keytruda increased 62% to $3.07 billion to top forecasts of $2.87 billion. Animal Health revenue rose 10% to $1.1 billion, matching expectations. For 2019, Merck raised its guidance ranges for adjusted EPS to $5.12 to $5.17 from $4.84 to $4.94 and for revenue to $46.5 billion to $47.0 billion from $45.2 billion to $46.2 billion. The stock has gained 7.6% year to date through Monday, while the SPDR Health Care Select Sector ETF has advanced 7.5% and the Dow Jones Industrial Average has rallied 16.1%.
Shares of Danaher Corp. fell 1.6% in premarket trading Thursday, after the medical technology and products company beat profit and revenue expectations, but provided a downbeat earnings outlook. Net income fell to $648.4 million or 89 cents a share, from $663.7 million, or 93 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew 5.5% to $1.16 to top the FactSet consensus of $1.15. Sales increased to $5.04 billion from $4.85 billion, above the FactSet consensus of $5.02 billion. The company expects fourth-quarter adjusted EPS of $1.32 to $1.35, below the FactSet consensus of $1.37, and trimmed its 2019 guidance range to $4.74 to $4.77, after raising it to $4.75 to $4.80 in July. The stock has run up 34.3% year to date through Wednesday, while the SPDR Health Care Select Sector ETF has gained 6.8% and the S&P 500 has rallied 19.9%.
With earnings surprise in the cards, the healthcare sector is expected to witness modest earnings growth of 0.3% in the third quarter, suggesting some room for potential upside for healthcare ETFs.
Shares of McKesson Corp. rallied 5.7% in midday trading Wednesday, enough to pace all of its larger-capitalization health care peers, after The Wall Street Journal reported that the drug distributor, and two others, were in talks to pay $18 billion to settle all litigation brought by state and local governments blaming the companies for fueling the opioid crisis. Of the other two drug distributors, shares of AmerisourceBergen Corp. climbed 4.7% and Cardinal Health Inc. hiked up 3.7%. Shares of Johnson & Johnson rose 2.4% after the WSJ report out late Tuesday, citing people familiar with the situation, said the company was also involved in the discussions to contribute additional money. The four companies' stocks topped the list of gainers in the SPDR Health Care Select Sector ETF , which inched up 0.1%, while the S&P 500 slipped 0.2%.
Shares of Abbott Laboratories fell 2.7% in premarket trading Wednesday, after medical device, diagnostics and drug maker reported a third-quarter profit that was in line with expectations, while sales came up a bit shy. Net income rose to $960 million, or 53 cents a share, from $563 million, or 32 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share grew to 84 cents from 75 cents, matching the FactSet consensus of 84 cents. Sales increased 5.5% to $8.08 billion, below the FactSet consensus of $8.11 billion. Within Abbott's business segments, revenue for medical devices was slightly above expectations, while nutrition, diagnostics and established pharmaceuticals was slightly below. Looking ahead, Abbott expects fourth-quarter adjusted EPS of 94 cents to 96 cents, surrounding the FactSet consensus of 95 cents, and narrowed its 2019 guidance range to $3.23 to $3.25 from $3.21 to $3.27. The stock has gained 13.3% year to date through Tuesday, while the SPDR Health Care Select Sector ETF has advanced 5.8% and the S&P 500 has climbed 19.5%.
Healthcare stocks and sector-related exchange traded funds found support from a strong start to the earnings season after UnitedHealth Group (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ) provided a much ...