CVS Caremark today announced its third-quarter net income gained more than 100% from the period a year ago. The hike in profit can be attributed to the acquisition of Caremark Rx Inc., as well as the expanding use of generic drugs.

CVS reported third-quarter net income of $689.5 million, or 45 cents a share, compared to $284.2 million, or 33 cents a share a year earlier. Revenue spiked 83% to $20.5 billion from $11.21 billion last year. Analysts' estimated earnings of 44 cents a share on revenue of $20.56 billion.

In light of the good tidings, CVS has upped its full-year predictions. The company is now estimating annual diluted earnings of $1.89 to $1.92 a share, compared to the previous forecast of $1.86 to $1.91 a share. Analysts' estimates averaged CVS' 2007 earnings to come in at $1.90 a share.

Concurrently, CVS reported its October same-store sales to have increased by 4.6%, while pharmacy same-store sales gained 4.5%. Front-end sales of general merchandise followed suit, rising 4.8%.

Despite the good news, the stock has lost more than 2.33% during intraday trading. Shares are currently trading at $40.71, down nearly 1 point.