CVS Caremark Taking A Bath
November 05, 2009 10:40 AM
In early morning trading, CVS Caremark (NYSE: CVS) is down nearly 25% after the CEO made cautious comments on the conference call.
Some of the negative items from CVS's call are below:
-CVS Caremark CEO Tom Ryan said: "I would be disappointed if we didn't have an EPS growth of at least 13%-15% next year for the enterprise. To get to that 13%-15% growth rate, I expected strong double digit growth in our retail business, which I still do, and I expected low to mid single digits in our PBM business, which is not going to happen."
Therefore, CVS Caremark will likely not achieve FY10 EPS growth of at least 13%-15% for enterprise
-CVS Caremark CEO: PBM business may decline as much as 10%-12%
-Expects operating profit in PBM business to decline in 2010.
-Lost more PBM business "than we expected"
-CVS has some big client losses.
