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WOONSOCKET, R.I. — The influx of new generic drugs hoisted earnings but tempered sales growth in the first quarter at CVS Caremark Corp.
The influx of new generic drugs hoisted earnings but tempered sales growth in the first quarter at CVS Caremark Corp.
For the three months ended March 31, income from continuing operations attributable to CVS Caremark jumped 23.1% to $956 million, or 83 cents per share, from $777 million, or 65 cents per share, a year earlier.
On average, financial analysts projected CVS’ adjusted earnings per share at 79 cents, according to Thomson Financial.
CVS said the net income surge was fueled mainly by introductions of generic medications, which carry lower prices but yield bigger profit margins.
Total first quarter sales, including CVS’ drug store and pharmacy benefit management units, dipped 0.1% to $30.76 billion.
Revenue in the retail pharmacy segment edged up 0.2% in the first quarter. Same-store sales fell 1.2%, including a decrease of 2.3% in the pharmacy and a gain of 1.4% in the front end. CVS said comparable-store sales results reflect the impact of new generics, a strong flu season, the shift of the Easter holiday from April in 2012 to March in 2013, and the absence of a leap day in 2013.
Sales in the PBM segment inched up 0.1% in the first quarter.
