CVS Strong Q2 Results, Finanlizes Red Oak Sourcing Deal

CVS reported strong growth in their services and retail businesses for the second quarter. Earnings of $1.13 beat estimates of $1.10 and showed a 16 cent a share increase over last year's second quarter earnings. The CEO attributed the increased earnings to PBM and retail businesses sales that beat estimates with strong gross margins. Net revenues beat estimates and increased nearly 11% to $34.6 billion from $31.2 billion in the same period last year. CVS raised its earnings guidance for the year to between $4.43 and $4.51 from their previous estimates of $4.36 and $4.50. CVS finalized their deal with Cardinal Health making their Red Oak Sourcing the largest generic sourcing entity in the United States. Whalen MacHale reports for TheStreet from New York.