CVS Health's Stock Falls After Downbeat Profit Outlook

CVS Health Corp.'s stock slumped 4.1% in premarket trade Friday, after the drugstore chain beat third-quarter sales expectations, but provided a downbeat profit outlook for next year. The company reported third-quarter earnings of $1.24 billion, or $1.10 a share, up from $948 million, or 81 cents a share, in the same period a year ago. Excluding non-recurring items, such as acquisition-related costs, adjusted earnings per share of $1.29 matched the FactSet consensus. Revenue rose to $38.64 billion from $35.02 billion, above the FactSet consensus of $37.9 billion, boosted by better-than-expected results in the drugstore chain's pharmacy services business. The company said it expects 2016 adjusted EPS of $5.68 to $5.88, below the FactSet consensus of $5.99. "The third quarter included the closing of the Omnicare acquisition in mid-August, and we are very optimistic about the potential that this long-term care business creates for us," said Chief Executive Larry Merlo. The stock has gained 7.8% year to date through Thursday, while the S&P 500 has tacked on 1.5%.