CVS Caremark Q3 profit plummets 20%

Woonsocket, R.I. CVS Caremark Corp. reported Wednesday that net income for the quarter ended Sept. 30 fell a sharp 20% to $809 million, compared with net income of $1.02 billion in the year-ago period. The retailer attributed the profit contraction to canceled contracts within its pharmacy benefit unit.

Revenue dropped 3.1% to $23.88 billion, compared with $24.6 billion in the prior year. Front store same-store sales increased 1.4% in the period.

In the past year, CVS has reported billions in lost contract revenue for its Caremark unit, which provides prescription drug purchasing, customer service and other pharmacy services.

During the quarter, CVS opened 49 new drugstores, and closed six retail drugstores, one specialty pharmacy store and one mail order pharmacy. In addition, the company relocated 18 retail drugstores. CVS currently operates 7,152 retail drug stores; 44 specialty pharmacy stores; 18 specialty mail-order pharmacies and five mail-order pharmacies in 44 states, Washington, D.C., and Puerto Rico.