Pharmacy chain operator CVS Caremark Corporation ( CVS ) on Thursday said its second quarter profits fell 1% from last year, but adjusted results were enough to beat analyst expectations.
The Woonsocket, RI-based company reported second quarter net income of $816 million, or 60 cents per share, compared with $821 million, or 60 cents per share, in the year-ago period. Excluding items, adjusted profit was 65 cents per share, narrowly besting analyst estimates of 64 cents.
Net revenue for the quarter rose 11% from last year to $26.6 billion. Analysts expected higher revenue of $26.76 billion.
Looking ahead, the company now expects full-year earnings of $2.75 to $2.81 per share on an adjusted continuing operations basis, narrowed from a prior outlook of $2.72 to $2.82. Analysts expect full-year profits of $2.78 per share.
CVS Caremark shares fell $1.17, or -3.2%, in early trading Thursday.
The Bottom Line
Shares of CVS Caremark ( CVS ) have a 1.38% dividend yield, based on last night's closing stock price of $36.21. The stock has technical support in the $33-$34 price area. If the shares can firm up, we see overhead resistance around the $38-$39 price levels.
CVS Caremark Corporation ( CVS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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