LONDON (ShareCast) - (Sharecast News) - US drugstore chain CVS posted stronger-than-expected first-quarter profits on Wednesday, boosted by increased prescription drug sales at its brick and mortar locations and a lower tax rate.
CVS saw overall revenue from its retail business move ahead 5.6% to roughly $20.4bn, mostly due to higher levels of same store prescriptions.

Nevertheless, while total sales for the quarter printed at $45.69bn, against $44.51bn for the same three months of a year ago, they fell short of the $45.8bn penciled in by analysts.

Besides the 8.5% growth in prescriptions, same-store sales of CVS' over-the-counter products increased 1.6% as a result of a severe flu season across the US.

As a whole, net income attributable to CVS came in at to $998m for the quarter, or $0.98 per share, a 4.8% year-on-year increase, as net revenue rose 2.6% to $45.69bn.

Excluding items, CVS which has been in the process of buying health insurer Aetna for $69bn for some time, earned $1.48 per share, topping analysts' estimates of $1.41 each.

The company also lifted its guidance for full-year EPS to between $6.87 and $7.08 (FactSet: $6.47).

As of 1330 BST, CVS shares had gained 3.03% in pre-market trading to $68.00 each.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE