CVS Caremark Q3 Profit Falls 21%, but Adjusted Net Still Beats View; Guidance cut (CVS)

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Drug store chain operator CVS Caremark Corporation ( CVS ) 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 billion.

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 trading Wednesday.

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 ( CVS ) is not recommended at this time, holding a 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CVS

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