|
CVS beats the Street in 2Q
|
 |
July 28, 1999: 9:01 a.m. ET
Net income up 25% on strong sales increase, expense control
|
NEW YORK (CNNfn) - Drugstore chain CVS Corp. posted a 25 percent increase in second-quarter profits Wednesday on a strong increase in sales, slightly beating Wall Street's forecasts.
The company, which operates more than 4,000 drugstores, earned $162.6 million, or 40 cents per diluted share, on a net basis as sales rose 16 percent to $4.36 billion. Analysts polled by earnings tracker First Call had predicted per-share earnings of 38 cents.
The Woonsocket, R.I.-based retailer earned $129.9 million, or 32 cents per share, in the 1998 second quarter. These results exclude $168.3 million in special charges for merger costs and restructuring.
"Our results were driven by a combination of strong top-line growth, continued expense control and improved gross margin performance that reflects the smallest decline we have seen in nearly three years," CEO Tom Ryan wrote in the earnings announcement.
The latest results reflect CVS's $30 million acquisition of online pharmacy Soma.com in June. All of the major drugstore chains are developing online arms as Internet analysts predict that electronic sales of health and beauty products will grow sharply. A highly anticipated initial public offering, Drugstore.com, which counts electronic retail leader Amazon.com as one of its backers, is slated to debut on the Nasdaq later Wednesday.
CVS (CVS) shares lost ½ to close at 47-3/4 Tuesday on the New York Stock Exchange. 
|
|
|
|
|
|
CVS
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
