CVS profit misses estimates as severe winter weather hurts sales

CVS Caremark Corp., the largest provider of prescription drugs in the U.S., posted first-quarter profit that missed analyst estimates as cold weather and a mild flu season hurt sales. The company reaffirmed its 2014 forecast. More

To continue reading this article, please do one of the following.



retail

CVS profit misses estimates as severe winter weather hurts sales

CVS CAREMARK CORP. reported first-quarter net income of $1.13 billion, an increase of 18.5 percent over the $954 million reported a year earlier.
Posted 5/2/14

WOONSOCKET – CVS Caremark Corp., the largest provider of prescription drugs in the U.S., posted first-quarter profit that missed analyst estimates as cold weather and a mild flu season hurt sales. The company reaffirmed its 2014 forecast.

Net income rose 18.5 percent to $1.13 billion, or 95 cents a share, from $954 million, or 77 cents, a year earlier, the company said Friday in a statement. Excluding one-time items, earnings were $1.02 a share, missing by 2 cents the average of 21 analyst estimates compiled by Bloomberg.

Total revenue increased 6.3 percent to $32.7 billion from $30.8 billion a year earlier, beating the $32.3 billion average of analysts’ estimates.

Full-year earnings are still forecast to be $4.36 to $4.50 a share, the Woonsocket-based company said in the statement.

The severe winter weather kept consumers out of storefront pharmacies during the quarter, reducing sales of prescription drugs and consumer goods. The mild influenza season and recent introductions of generic drugs also hurt comparison with a year earlier.

CVS previously announced plans to stop selling tobacco products at its more than 7,600 pharmacy stores in the U.S. by October, a potential $2 billion a year sales hit. Growth in prescription drug sales, driven by new health insurance available to the 48 million previously uninsured Americans through the Affordable Care Act, and concentration on care provided through the company’s more than 800 MinuteClinics may help replace some lost revenue, company executives said.

CVS rose less than 1 percent to $73.09 yesterday in New York trading. The shares had risen 24 percent in the year through yesterday.

Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement