CVS Caremark Corporation (NYSE:CVS) raises 2012 profit forecast on strong Q3 numbers

Drugstore operator and pharmacy benefits manager CVS Caremark Corporation(NYSE:CVS) late Tuesday reported 16 percent rise in its third quarter profit.

In a statement the company said it earned $1.01 billion, or 79 cents per share, in the three months that ended Sept. 30. That compares with earnings of $868 million, or 65 cents per share, in last year's quarter.

Adjusted earnings were 85 cents per share, 2 cents better than analysts expected. That excluded $121 million for the gradual write down of acquisition-related assets.

Revenue jumped 13 percent to $30.2 billion, above the $30.09 billion analysts expected.

The company said that revenues from both its drugstores business as well as pharmacy benefits business showed an increase in the third quarter.

Revenue from pharmacy services rose 22 percent to $18.1 billion, largely on new clients’ acquisitions from rivals, growth of its Medicare Part D prescription program and higher medication prices.

The segment processed about 255 million prescription claims in the quarter, up 11 percent, CVS said.

Revenue from drugstores rose 5.5 percent to $15.5 billion, as revenue at stores open at least a year rose 4.3 percent from a year earlier.

They filled about 210 million prescriptions in the quarter, up 12 percent, when counting 90-day prescriptions as three monthly prescriptions.

Encouraged by the strong results in the third quarter and optimism about its retention rate led the company to raise its 2012 earnings forecast.

It now expects adjusted earnings of $3.38 to $3.41, up from its previous forecast of $3.32 to $3.38 per share, and net earnings per share of $3.15 to $3.18.