(RTTNews) - Drugstore operator and pharmacy benefits manager CVS Caremark Corp. (CVS: News ) on Thursday reported a 39% surge in profit for the third quarter compared to the same period last year, reflecting double-digit segmental revenue growth. Adjusted earnings per share from continuing operations as well as net revenues for the quarter grew from last year and beat analysts' estimates. Looking ahead, the company lifted the lower end of its adjusted earnings forecast for fiscal year 2009.

Third-Quarter Results

Net income available to the common shareholders for the third quarter rose to $1.02 billion or $0.71 per share from $732.5 million or $0.50 per share in the prior-year quarter.

The latest quarter's results include loss from discontinued operations of $1.8 million of lease-related costs, compared to loss of $82.8 million or $0.06 per share of lease-related costs in the previous-year period.

Income from continuing operations for the quarter rose to $1.02 billion or $0.71 per share from $818.8 million or $0.56 per share a year ago. The latest quarter's results include previously unrecognized tax benefits of $155.7 million, or $0.11 per share, related to the expiration of various statutes of limitation and settlements with tax authorities.

On an adjusted basis, net earnings from continuing operations available to common shareholders for the quarter increased to $1.01 billion or $0.76 per share from $877.5 million or $0.60 per share in the year-ago quarter. On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.64 per share. Analysts' estimates typically exclude special items.
Net revenues for the third quarter increased 18.1% to $24.64 billion from $20.86 billion in the year-ago quarter, and beat analysts' consensus revenue estimate of $24.61 billion. Net revenues for the quarter were positively impacted by one more reporting day compared to the third quarter of 2008.

Operating profit for the quarter increased to $1.57 billion from $1.47 billion in the prior-year period.

Commenting on the results, Tom Ryan, Chairman, President, and Chief Executive Officer of CVS Caremark, said, "I'm very pleased with our performance across the enterprise this quarter. The quarter was characterized by continued industry-leading performance in our retail business, solid performance in our PBM, and record results from MinuteClinic. Our integrated pharmacy care offerings are contributing to results across the company at a growing pace. We achieved solid revenue growth, healthy earnings growth and significant free cash flow."

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