Drug store chain operator CVS Caremark Corporation (
) on Wednesday said its third quarter profit plunged 21% from last
year on lower revenue.
The Woonsocket, RI-based company reported third quarter net
income of $808 million, or 59 cents per share, compared with $1.02
billion, or 71 cents per share, in the year-ago period. Excluding
one-time items, adjusted profit was 65 cents per share.
Revenue fell 3% from last year to $23.9 billion.
On average, Wall Street analysts expected a slightly smaller
profit of 64 cents per share, on matching revenue of $23.9
Looking ahead, the company cut the high-end of its 2010 earnings
guidance. It now expects full-year earnings of $2.68 to $2.70 a
share, compared with a prior estimate of $2.68 to $2.73.
CVS Caremark shares fell 43 cents, or -1.4%, in premarket
The Bottom Line
We recently removed shares of CVS back on Nov.5, when the stock was
trading at $36.15. The company has a dividend yield of 1.15%, based
on last night's closing stock price of $30.53. The stock has
near-term technical support in the $27 price area. If the shares
can firm up, we see overhead resistance around the $32-$34 price
levels. We would remain on the sidelines for now.
CVS Caremark Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com