This morning, CVS Caremark Corp. (NYSE: CVS) reported second-quarter earnings of $966 million, or $0.75 per share, and $30.7 billion in revenue. EPS were up from $0.60 in the same period a year ago, and revenue was 16.3% higher. The Thomson Reuters consensus estimates called for $0.79 per share and $30.9 billion revenue.
The Rhode Island-based pharmacy operator also raised its full-year EPS guidance to $3.32 to $3.38, versus the analysts’ consensus estimate of $3.32 per share.
Revenues in the Retail Pharmacy Segment increased 6.9% to $15.8 billion, with same-store sales 5.6% higher year over year. CVS benefited from competitor Walgreen Co. (NYSE: WAG) not being part of the Express Scripts Holding Co. (NASDAQ: ESRX) pharmacy provider network during the quarter. Walgreen will reenter that network in September.
CVS also said revenues in the Pharmacy Services Segment increased 28.2% to $18.4 billion, driven in part by new activity resulting from the acquisition of the Medicare prescription drug plan of Universal American Corp.
“We delivered results that were at or above our expectations in both the retail and PBM segments,” said Larry Merlo, president and CEO. “With our stable business and differentiated offerings, we remain very well positioned in the marketplace.”
Shares are up by 1.9% in premarket trading at $45.75, and the 52-week trading range is $31.30 to $48.69. Thomson Reuters had a consensus analyst price target of $50.95 before this news.
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