CVS/Caremark Corp. (NYSE: CVS) reported Tuesday that its profit for the fiscal fist quarter rose 24 percent on stronger sales, as revenue rose 32 percent.
The integrated pharmacy-services provider said that net income, including 10 days of Caremark operations, was $408.9 million, or 43 cents per share in its first quarter, up 24 percent from $329.6 million, or 39 cents per share seen a year earlier.
During the quarter, the CVS acquired Caremark stores, and expenses related to the deal hurt earnings by one cent per share. The company also issued over 700 million shares along with the deal, a figure that took an additional 2 cents off its earnings.
Overall, revenue for the Woonsocket, R.I.-based company rose 32 percent to $13.18 billion, compared to $9.98 billion seen last year.
A survey of analysts by Thomson First Call produced a consensus earnings estimate of 45 cents per share for the company, on revenue of $13.77 billion.
For its stores open for more than a year, same-store sales increased by 7.5 percent. Pharmacy same store sales also increased by 7.8 percent. Front end same store sales grew 6.6 percent.
The increasing usage of generic drugs and our successful front end strategies are both driving higher margins at CVS, the company said.
CVS shares rose slightly in late morning trading on the New York Stock Exchange, gaining 68 cents, or 1.88 percent, to hit $36.80.