CVS Caremark Reports Higher Q2 Profit; Raises Outlook (CVS)

PUBLISHED: 08 Aug 2012 @ 06:25 | Comments (0) | More info about Ed Liston

Pharmacy healthcare provider CVS Caremark Corporation (NYSE:CVS) today reported an increase in its second-quarter profit. CVS also raised and narrowed its 2012 forecast.

CVS’s second-quarter results benefited from a split between its rival Walgreen Co. (NYSE:WAG) and Express Scripts Holdings Co. (NASDAQ:ESRX). The company said that the split sent more customers to its drugstores.

A contract between Walgreen and Express Scripts expired at the end of 2011; however, the two companies last month said that they will resume doing business in September. But, CVS still expects a gain of around $0.05 per share in the third and the fourth quarter from the split. CVS CEO Larry Merlo said that the company has put in place a plan to retain customers.

For the second quarter, CVS reported earnings of $966 million, or $0.75 per share, compared to $816 million, or $0.60 per share reported for the same period in the previous year. Adjusted earnings for the quarter were $0.81 per share, beating consensus estimate of $0.79 per share. Revenue for the quarter rose 16% to $30.71 billion.

Looking ahead to the full year, CVS Caremark expects adjusted earnings to be between $3.32 per share and $3.38 per share, compared to previous forecast $3.23-$3.33 per share.

CVS stock was down more than 1%, at last check.

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