CVS Caremark 2Q profit tops view, boosts outlook

CVS Caremark, one of the nation's biggest drugstore operators, said Tuesday its second-quarter profit rose 15 percent, helped by strong pharmacy benefits revenue and a retail sales boost due to a later Easter.

The results beat Wall Street expectations and the company boosted its outlook for the full year.

The Woonsocket, R.I., company said it earned $886.5 million, or 60 cents per share, in the three months ended June 30, up from $771.2 million, or 53 cents per share, a year ago.

Excluding charges, the company said it earned 65 cents per share -- a penny above analysts' estimates.

Meanwhile, revenue rose 18 percent to $24.87 billion from $21.14 billion a year ago and just above Wall Street estimates of $24.41 billion.

Pharmacy services revenue rose 22 percent to $13 billion, partly because of the addition of RxAmerica pharmacy benefits management business, which the company acquired as part of the Longs Drugs stores buyout in October.

The Caremark pharmacy benefits business continued to gain a boost from its Maintenance Choice program, which allows health plan members to pick up 90-day orders at drugstores while paying lower mail-order prices.

Pharmacy benefit network revenue rose 27.4 percent while mail-order services revenue rose 12.5 percent.

The retail pharmacy unit, which includes in-store pharmacies and front-store items, got a lift from a later Easter during the quarter. Sales rose 17 percent to $13.8 billion. CVS runs more than 6,900 drugstores in 43 states, the District of Columbia, and Puerto Rico.

Looking ahead, the company raised its full-year profit from continuing operations outlook to between $2.59 and $2.64 per share, up from a prior range of $2.55 to $2.63 per share. Analysts expect full-year profit of about $2.60 per share.