NEW YORK - CVS Caremark Corp. said Thursday its third-quarter profit jumped 39 percent, but shares plunged after the company said its struggling Caremark pharmacy benefits management business lost $2 billion in business over the last few months.

As a result, CEO Tom Ryan said CVS won't reach its own expectations in 2010 because profits at Caremark could drop as much as 10 or 12 percent. Three months ago, Ryan said CVS would be "very disappointed" if its per-share profit did not grow 13 to 15 percent next year. He said CVS won't reach that goal.

Caremark President Howard McClure will retire before the end of the month, and Ryan will take over the business temporarily.

In premarket trading, CVS stock dropped $6.40, or 17.7 percent, to $29.75.

The latest contract losses include $1.7 billion in business for "dual eligible" people who can receive both Medicare and Medicaid benefits. CVS also lost contracts with the New Jersey state Blue Cross plan and Ohio's managed Medicare business.

For the third quarter, the Woonsocket, R.I., company's profit and revenue were about equal to Wall Street's estimates,

Net income jumped to $1.02 billion, or 71 cents per share, from $732.5 million, or 50 cents per share, a year prior. Net revenue rose 18 percent to $24.64 billion from $20.86 billion.

Excluding a tax benefit of 11 cents per share, adjusted profit from continuing operations totaled 65 cents per share.

Analysts expected 64 cents per share in profit and $24.61 billion in revenue.

Revenue at CVS drugstores rose 17.9 percent, with sales at stores open at least a year rising 5.7 percent. Meanwhile, revenue from Caremark pharmacy benefits management business rose 23.4 percent. The company said pharmacy network claims processed rose 9 percent to 146.5 million during the quarter, while mail choice claims rose 11.4 percent to 16.4 million.

Looking ahead, the company narrowed its adjusted profit forecast to between $2.61 and $2.64 per share from prior guidance of $2.59 to $2.64 per share. Analysts expect profit of $2.62 per share.

----

Associated Press Writer Damian Troise in New York contributed to this story.

A service of YellowBrix, Inc.