Boston, MA 05/09/2014 (wallstreetpr) – New acquisitions and generic drugs helped CVS Caremark Corporation (NYSE:CVS) reach a milestone in terms of first quarter earnings that were up by 18%, despite experiencing the full wrath of the harsh weather conditions in the quarter. CVS Caremark Corporation runs the second largest drug store in the U.S with more than 7,700 stores distributed nationwide. Sales were slightly affected by snowstorms and subzero temperatures that greatly affected transportation channels. Weaker flu season compared to last year, also hurt sales in some stores.
Generic Drug Sales Increasing
CVS Caremark Corporation (NYSE:CVS)’s pharmacy benefit management operations played a pivotal role in driving growth in the quarter with sales in the segment surging by 10% to highs of $20 billion. Rising drug prices and the acquisition of drug infusion business, Coram, did more than enough to ensure impressive margins in terms of revenue.
Continued growth in generic drug continues to help the company’s bottom line providing a wider margin between cost of purchases and reimbursements. Generic drug continues to thrive considering they provide alternative treatments at highly affordable costs. CVS Caremark Corporation earnings, as a result toped a high of $1.13 billion as of the end of March 31, up from $954 million reported last year same quarter.
2014 outlook
CVS Caremark Corporation has consequently reaffirmed its earnings of between $4.36 and $4.50 as of a close of business in December this year. The massive improvement follows the drugstore decision to phase out tobacco products in its stores after widespread public uproar. The move seems to have had a major impact as CVS Caremark Corporation (NYSE:CVS) expects its revenues to reach highs of $2 billion although it is not expected to have any impact on forecasts for earnings.
CVS Caremark Corporation is now trying to raise its focus on health care by adding in-store clinics and trying to work with doctors as close as possible.
