WOONSOCKET – CVS Caremark Corp., the largest provider of prescription drugs in the U.S., reported a 2.2 percent decline in fourth-quarter earnings and projected 2011 profit that trailed analysts’ forecasts.
Profit excluding some items will range from $2.72 to $2.82 a share, the Woonsocket-based company said Thursday in a statement. Analysts projected $2.89, the average of 22 estimates in a Bloomberg survey.
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Revenue fell 4.1 percent to $24.8 billion last quarter, hurt by a 9.7 percent decline in sales of the pharmacy-benefits management division after the termination of the contracts of some large clients. Analysts estimated sales of $25 billion on average.
PBMs make money by negotiating prices with retail pharmacies and drugmakers and processing a large number of claims. They pass most of those savings on to corporate, government and insurance customers.
Net income fell to $1.03 billion, or 75 cents a share, from $1.05 billion, or 74 cents, a year earlier. Excluding some items, profit totaled 80 cents, exceeding by one penny the average estimate of analysts.
CVS also reported full year results. Net income for the company fell to $3.43 billion in 2010 from $3.70 billion in 2009. Revenue slumped to $96.41 billion, compared to $98.73 billion.
CVS fell 30 cents to $34.65 Wednesday in New York Stock Exchange composite trading. The shares have slipped less than 1 percent this year through Wednesday, after advancing 8 percent in 2010.
GIVE ME A BREAK