Drug store chain operator CVS Caremark Corporation ( CVS
The Woonsocket, RI-based company reported second quarter net income of $821 million, or 60 cents per share, compared with $886 million, or 60 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 68 cents per share.
On average, Wall Street analysts expected a matching profit of 68 cents per share for the quarter.
Overall net revenue fell 3.5% from last year, to $24.01 billion.
Looking ahead, the company cut its full-year earnings forecast to a range of $2.68 to $2.73 per share, which would miss analyst expectations of $2.79 per share for the year. As a result, CVS shares plunged $1.05, or -3.3%, 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 1.14%, based on last night's closing stock price of $30.60. 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 Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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