UPDATE: CVS Posts Better-Than-Expected Q2 Results, Shares Rise

Shares of CVS Caremark

gained more than 2% in pre-market trading after the company reported upbeat second-quarter results and lifted earnings forecast for the year. The Woonsocket, Rhode Island-based company posted quarterly earnings of $1.25 billion, or $1.06 per share, versus $1.12 billion, or $0.91 per share, in the year-ago quarter. Its adjusted earnings climbed 16.5% to $1.13 per share from $0.97 per share. Its sales rose 10.7% to $34.6 billion from $31.25 billion. However, analysts were projecting earnings of $1.10 per share on revenue of $33.52 billion. Revenue in the Pharmacy Services Segment rose 16.2% to $21.8 billion, while Retail Pharmacy Segment revenue surged 4.5% to $16.9 billion in the quarter. During the quarter, CVS opened 34 new retail drugstores, closed 4 retail drugstores and relocated 8 retail drugstores. President and Chief Executive Officer Larry Merlo said, "I'm extremely pleased with our strong performance this quarter. With Adjusted EPS increasing 16.5%, we came in two cents above the high end of our expectations.” CVS Caremark now expects full-year adjusted earnings of $4.43 to $4.51 per share, versus its earlier forecast of $4.36 to $4.50 per share. It also expects Q3 adjusted earnings of $1.11 to $1.14 per share. CVS Caremark shares gained 2.30% to $79.15 in pre-market trading.