CVS Caremark predicts 2014 earnings growth

SHARE CVS Caremark predicts 2014 earnings growth
60658_1.gif

CVS Caremark Corp. expects earnings per share to grow more than 10 percent next year, and the drugstore chain plans to return some money to its shareholders through a higher dividend.

The Woonsocket, R.I., company said it expects adjusted earnings of between $4.36 and $4.50 per share in 2014. Analysts surveyed by FactSet expect, on average, earnings of $4.46 per share.

CVS Caremark runs the second-largest drugstore chain in the United States after Walgreen Co., and its Caremark unit also is one of the nation’s largest pharmacy benefits managers.

The company said its forecast assumes the completion of $4 billion in share buybacks next year and the second-half launch of a recently announced joint venture with prescription drug distributor Cardinal Health to buy generic drugs.

CVS Caremark also said its board approved a 5-cent increase in its quarterly dividend, to 27.5 cents per share. The higher payout will be made Feb. 3 to shareholders of record on Jan. 23.

The company’s board also approved a new stock buyback program for up to $6 billion in shares. That is expected to be completed over several years.

via The Associated Press

The Latest
Perch and other summer fishing around Chicago leads this sprawling raw-file Midwest Fishing Report.
Three people were shot and three others were stabbed over several hours late Sunday into early Monday in Lake View East, where police had stepped up patrols after the Pride Parade.
The fire began in the basement of a house in the 4000 block of West Potomac Avenue early Sunday, officials said.
Two train passengers and one person in the truck were killed, according to the Missouri State Highway Patrol.
Devastated survivors struggle to grieve as the deceased’s great-granddaughter calls attention to herself.