CVS Tops 3Q Profit Forecasts, Shrinks 2017 Expectations
WOONSOCKET, R.I. (AP) — CVS Health edged Wall Street third-quarter earnings expectations, but slumping sales from established stores helped chop the drugstore chain's profit more than 16 percent.
The company also narrowed its forecast for 2017 earnings.
CVS Health Corp. said Monday that it now expects annual adjusted earnings of $5.87 to $5.91 per share, a forecast that counts charges due to hurricanes. That's down from a forecast of $5.83 to $5.93 that it made in August.
Analysts expect, on average, earnings of $5.88 per share, according to FactSet.
In the third quarter, CVS Health earnings fell to $1.29 billion from $1.54 billion in last year's quarter, while total revenue climbed more than 3 percent to $46.18 billion.
Earnings, adjusted for one-time gains and costs, came to $1.50 per share.
Analysts expected, on average, earnings of $1.49 per share on $46.19 billion in revenue, according to Zacks Investment Research.
CVS Health runs more than 9,700 retail locations, counting the pharmacy and clinic businesses of retail giant Target Corp. That total is second only to Walgreens. CVS Health also processes more than a billion prescriptions annually as a pharmacy benefits manager, or PBM.
Shares of Woonsocket, Rhode Island-based CVS Health Corp. shares have declined 12 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 16 percent. The stock has declined 16 percent in the last 12 months.
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