CVS Caremark (NYSE: CVS) and Walgreens (NYSE:WAG) both released earnings reports this week, revealing strong sales for two of the nation's top drugstore chains.
CVS reported a 25 percent rise in its third-quarter earnings and lifted its earnings forecast for the year. Quarterly profit for the company surged to $1.25 billion, or $1.02 per share, versus a year-ago profit of $1.01 billion, or $0.79 per share. Revenue for CVS rose 5.8 percent to $32 billion, versus analysts' estimates of $31.53 billion.
Same store sales increased 3.6 percent over last year, with pharmacy same store sales up 5.7 percent. Revenue in CVS's pharmacy services rose 7.8 percent in the quarter, largely attributed to more prescriptions filled for new clients.
CVS now expects to post adjusted earnings per share of $3.98 to $4.01 this year, versus its prior forecast of $3.90 to $3.96 per share.
One of CVS's largest competitors, Walgreens, also posted strong earnings for the month of October. The retailer had sales of $6.37 billion, an increase of 6.1 percent from $6.0 billion for the same month last year. Calendar 2013 sales to date were $60.47 billion, an increase of 4.3 percent from $57.97 billion in 2012.
Front store sales increased 3.5 percent over last year, with comp-store sales seeing a boost of 2.3 percent due to slightly more foot traffic and more items purchased per transaction.
Similar to its rival CVS, Walgreens also saw an increase in prescription sales. Prescriptions filled at comparable stores increased by 5.7 percent while comparable store pharmacy sales increased 7.9 percent.
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