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BUSINESS BRIEFS

CVS Health CEO Lynch steps down

CVS Health CEO Karen Lynch has stepped down with company shares sinking 19% this year and the health care giant struggling on several fronts.

Company shares tumbled again Friday after CVS Health also warned of disappointing third-quarter earnings and said investors should not rely on guidance for that quarter that provided in August.

Lynch will be replaced by veteran CVS Health executive David Joyner, who will attempt to steer the company through rising costs to its health insurance business, slumping drugstore sales and growing investor pressure. All major pharmacy chains are attempting to navigate a drastically changed landscape, facing competition online and elsewhere.

Leerink Partners analyst Michael Cherny said the leadership change was unexpected, though he understood the rationale behind it "following another quarter of underperformance."

American Express profit rises

NEW YORK - American Express' third-quarter profit topped analysts' expectations as the credit card company's cardholders continue to spend, with many holding a balance.

American Express earned $2.51 billion, or $3.49 per share, for the period ended Sept. 30. That compares with $2.45 billion, or $3.30 per share, a year earlier.

The performance beat the $3.27 per share that analysts surveyed by Zacks Investment Research were calling for.

Revenue totaled $16.64 billion, meeting Wall Street's estimates.

The company once again benefited from its card members - who tend to be wealthier and less exposed to economic fluctuations - continuing to spend on their cards, despite some economic uncertainty and the effects of inflation.

Customers spent $387.3 billion on their cards last quarter, up 6% from the year before. Merchants pay a fee for each time they accept an American Express card. That fee ranges depending on industry and merchant size, but is typically 2% to 4%.

- From wire reports