(By Balachander) CVS Caremark Corp. (NYSE:CVS) raised its earnings forecast for the full year after the health care company reported better-than-expected quarterly earnings helped by jump in revenue.
Adjusted earnings per share (EPS) jumped 25 percent to 81 cents from 65 cents in the same period of last year, topping market expectations of 79 cents. GAAP EPS rose to 75 cents from 60 cents.
Revenue climbed 16.3 percent to $30.7 billion, versus expectations of $30.9 billion. Revenue at the company's pharmacy services and retail pharmacy segments gained 28.2 percent and 6.9 percent, respectively. Retail pharmacy segment same stores sales grew 5.6 percent.
The company attributed the jump in pharmacy services revenue to new activity resulting from its purchase of the Medicare prescription drug plan of Universal American Corp. in the second quarter of 2011.
Pharmacy network claims processed rose 13.7 percent to 197.8 million for the second quarter ended June 30.
For the full year, the company now expects adjusted EPS in the range of $3.32 to $3.38 from prior expectations of $3.23 to $3.33, while analysts expect $3.32.
The company currently forecasts retail pharmacy segment's operating profit to grow between 14 percent and 15 percent, and the pharmacy services segment's operating profit growth is expected to advance between 13 percent and 15 percent.
The stock, which has been trading in the 52-week range between $31.30 and $48.69, ended Monday's regular trading at $44.90.