CVS Profit, Sales Rise Above Expectations

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CVS Health Corp. reported first-quarter net profit rose to $1.22 billion, or $1.07 a share, from $1.13 billion, or 95 cents a share, in the same period a year ago. Excluding non-recurring items, such as asset amortization related to acquisitions, the drugstore chain said adjusted earnings per share came in at $1.14, beating the FactSet consensus of $1.08. Revenue increased 11% to $36.3 billion, above the FactSet consensus of $35.9 billion, with both pharmacy and retail revenue rising above estimates. Same-store sales increased 1.2%, topping the FactSet consensus of 0.9%, as a 4.2% rise in pharmacy sales offset a 6.1% decline in front-end sales. The company expects second-quarter adjusted earnings of $1.17 to $1.20, below the FactSet consensus of $1.25, but adjusted its 2015 EPS outlook range higher to $5.08 to $5.19 from $5.05 to $5.19. The stock, which gained 0.5% in light premarket trade, has advanced 3.1% year to date, while the S&P 500 has edged up 1.3%.

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