CVS Plunges on $2B in Lost Contracts

Revenue climbed 18% to $24.64 billion, while same-store sales jumped 5.7%. Revenue at Caremark pharmacy benefits management business soared 23.4%.

The drugstore received an added boost from flu related prescriptions, which rose 10%.

"When you compare CVS to rivals Walgreen and Rite Aid they are on the right track and more profitable than the other two," van Beeck says.

Van Beeck also commented that the enormous stock drop-off is a bit drastic, considering how much other growth the company has as the Baby Boomers age, and mail-order prescriptions gain steam.

Looking ahead, CVS narrowed its full-year earnings forecast to between $2.61 and $2.64 a share from prior guidance of $2.59 to $2.64 a share. Analysts expect profit of $2.62.

On Wednesday, rival Walgreen(WAG) reported a 4.9% jump in its October same-store sales, as it saw an unexpected boost from front-end sales. Rite Aid(RAD), meanwhile, posted a 0.5% slip in its comparable sales for the month.

-- Reported by Jeanine Poggi in New York

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