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.

You have read this article CVS / CVS Caremark Corporation (NYSE:CVS) / NYSE:CVS with the title NYSE:CVS. You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/11/cvs-caremark-corporation-nysecvs-raises.html. Thanks!

Notable Stocks: Wells Fargo & Company (NYSE:WFC) & CVS Caremark Corporation (NYSE:CVS)

Wells Fargo 3Q earnings rise on growth of loan book

With increased mortgage lending and higher collection of fees, Wells Fargo & Company (NYSE:WFC) has posted record earnings in the third quarter. The bank issued more loans and also collected more interest on loans, compared to the same period last year. However, lower-than-expected revenue sent share prices tumbling 3 percent before opening bell.

The bank issued $139 billion of mortgage loans compared to only $89 billion in the third quarter last year. Net income for the quarter increased by 23 percent to $4.72 billion compared to last year’s $3.84 billion. Earnings per share were 88 cents against analyst expectations of 87 cents. Last year, the earnings had been 72 cents a share. Revenue for the period rose 8 percent to $21.21 billion. This was slightly lower than analysts’ estimates.

While net interest income rose by 1 percent, non-interest income which includes insurance and mortgage banking revenue and fees increased 16 percent.  

The stock fell 3 percent to $34.10.

On Tuesday, the federal government had filed a suit against Wells Fargo, accusing it of misleading regulators about the quality of several thousand loans for qualifying for federal loan insurance.

U.S. Government to investigate allegations against CVS Caremark

According to a Los Angeles Times report, the U.S. Government is looking into allegations that CVS Caremark Corporation(NYSE:CVS) refilled descriptions and submitted insurance claims to Medicare, the U.S. Health program for the elderly and disabled, without taking approval of the patients. An official who was not named said that the Inspector General for the U.S. Department of Health and Human Services had launched an investigation. This department is in charge of looking into potential Medicare fraud. Officials of the Department and CVS Caremark could not be reached.

An earlier probe which had continued for four years had ended in January when CVS Caremark had agreed to pay $5 million to settle charges made against it for incorrect pricing of drugs for the elderly and disabled.

Shares of CVS slid 1% to $47.13.

You have read this article NYSE:CVS / NYSE:WFC / Wells Fargo Company (NYSE:WFC) CVS Caremark Corporation (NYSE:CVS) with the title NYSE:CVS. You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/notable-stocks-wells-fargo-company.html. Thanks!

Breakfast News: JPMorgan Chase & Co. (NYSE:JPM) & CVS Caremark Corporation (NYSE:CVS)

JPMorgan Chase & Co. (NYSE:JPM) on Friday reported a 34 percent rise in profit for the quarter to September, at a record $5.7 billion.

Its earnings were $1.40 per share, surpassing analyst forecast of $1.21 a share.

Revenue also rose to $25.1 billion, above forecasts of $24.4 billion.

The bank said that the bank had lesser provisioning for bad loans which helped in its reporting higher earnings. It made a provision of $1.8 billion for bad debts, which 26 percent lower than what it had set aside a year earlier.

Shares in the bank were up 39 cents at $42.49 in pre-market trades. 

Meanwhile, CVS Caremark Corporation(NYSE:CVS) has come under the scanner of U.S. regulators for allegedly refilling prescription and submitting insurance claims to Medicare without the approval from patients.

The Los Angeles Times reported on Friday that the Inspector General for the U.S. Department of Health and Human Services had launched an investigation into CVS Caremark's alleged fraudulent behaviour.

Reuters which followed up the story said that officials at the agency and CVS Caremark, the second-biggest U.S. drug store chain, could not be reached for comment outside regular U.S. business hours.

Medicare provides medical benefits for the elderly and disabled. In January CVS had agreed to pay $5 million to settle charges of inaccurate pricing of some drugs for the elderly and disabled.

Shares of CVS are down 1.50% to $47.60 in the pre-market session.

You have read this article CVS Caremark Corporation (NYSE:CVS) / JPMorgan Chase Co. (NYSE:JPM) / NYSE:CVS / NYSE:JPM with the title NYSE:CVS. You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/breakfast-news-jpmorgan-chase-co.html. Thanks!