WOONSOCKET, R.I. (
) -- Easter treats and the swine-flu outbreak: two gifts that keep on giving to drugstores. Indeed, both boosted
second-quarter profit by 15%.
During the quarter, the company earned $886.5 million, or 60 cents a share, compared with $771.2 million, or 53 cents , in the year-ago period.
Excluding charges, the drugstore actually earned 65 cents, a penny above analysts' expectations.
Revenue jumped 18% to $24.87 billion from $21.14 billion, boosted by pharmacy sales. Same-store sales grew 6.1%.
Pharmacy revenue shot up 22% to $13 billion, helped by the addition of RxAmerica pharmacy benefits management business, which the company acquired as part of the Long Drugs stores buyout in October.
The retail pharmacy unit, which includes in-store pharmacies and front-store items like cosmetics, candy and hair care products, grew 17% to $13.8 billion, mostly due to the later Easter holiday.
Sales were also helped by consumers flocking to stores for hand sanitizers and anti-viral medications to fight the swine flu outbreak.
CVS now expects full-year earnings in the range of $2.59 to $2.64 a share, up from prior guidance of $2.55 yo $2.63 a share.
said its July same-store sales rose 2%, also helped by pharmacy sales, while
0.6% decline in comparable sales
during the month.
-- Reported by Jeanine Poggi in New York.
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