CVS Health (NYSE:CVS) traded ~7% higher in the premarket on Wednesday after the pharmacy chain operator reported better-than-expected quarterly revenue for the first time this year with its Q3 2024 financials.

The Woonsocket, Rhode Island-based healthcare giant appointed Steve Nelson, who most recently served as CEO of value-based primary care company ChenMed, as the President of its insurance arm, Aetna, effective Wednesday.

A former CEO of UnitedHealth Group's (UNH) insurance arm UnitedHealthcare, Nelson "is an industry veteran who has successfully led multiple segments of a diverse managed care company and driven innovation and growth throughout his career," CEO David Joyner remarked.

After two consecutive quarterly revenue misses in 2024, CVS reported $95.4B in revenue for the quarter, beating the consensus by as much as $2.7B as its Pharmacy & Consumer Wellness and Health Care Benefits segments outperformed.

CVS' Pharmacy & Consumer Wellness segment added $32.4B in revenue with ~12% YoY growth as prescriptions filled on a 30-day equivalent basis increased by ~6%, mainly due to higher utilization.

Meanwhile, its Health Care Benefits segment, which operates Aetna, brought $33.0B to the top line, with ~26% YoY growth even as premium deficiency reserves worth ~$1.1B led the unit to record $924M adj. operating losses compared to $1.5B of income last year.

Health Care Benefits segment's medical benefits ratio, which indicates the share of premiums paid out for healthcare benefits, rose to 95.2% from 85.7% in the prior year period due to factors such as higher acuity among the company's Medicaid members and increased utilization.

CVS' Health Services segment, which houses its PBM unit Caremark, brought $44.1B despite a ~5% YoY drop, mainly due to the previously announced loss of a large client.

However, missing the consensus estimates, the company's adjusted net income plunged ~52% YoY to $1.4B, mainly driven by roughly $1.1B of premium deficiency reserves and amid $1.2B restructuring expenses.

The company didn't issue its outlook for the year, having pulled its prior guidance in October with the appointment of Joyner due to higher medical costs in its Health Care Benefits segment.