CVS Caremark Net Earnings Rise 39% Behind Revenue Gains (CVS, WAG)
November 05, 2009 10:52 AM
CVS Caremark Corp. (NYSE: CVS) beat out analyst expectation as its third quarter earning rose 39% from the previous quarter. CVS Caremark Corp used their revenue gains from it Pharmacy Benefits business to help fuel their profits.
This upbeat results shows that their decision to acquire Caremark for their benefits business is actually paying off. CVS has also taken advantage of their “Maintenance Choice “ Program, which allows customers to get the same low price as if it was bought through the Pharmacy Benefits units mail service if they pick up 90 day prescriptions through drugstores.
The Maintenance Choice Program help boost sales of stores open for less than a year, increasing sales by 2.5%. However, same store general merchandise sales stalled, gaining only 0.8% and overall same stores failed to beat the company’s expectations. Their rival Walgreens (NYSE: WAG) saw their same store sales gain 4.9% behind flu vaccinations.
The positive earnings have prompted the company to narrow their earnings forecast range of $2.59 - $2.64 to $2.61 to $2.64.
