CVS Guides FY10 EPS Below Consensus

CVS Caremark (CVS 30.98 +0.38) reported second quarter earnings of $0.68 per share, excluding $0.03 per diluted share of accruals in our Retail Pharmacy segment for anticipated legal settlements, in-line with the Thomson Reuters consensus of $0.68.

Revenues fell 3.5% year-over-year to $24.01 billion, worse than the $24.13 billion consensus.

For its fiscal year 2010, the company issued downside guidance earnings guidance. The company expects to see earnings of $2.68 to $2.73 per share,  vs. $2.79 Thomson Reuters consensus.

The earnings guidance revision results from the reduced retail sales guidance as well as higher-than-expected legal accruals and expenses, and from the initial dilution related to implementation costs for the Aetna contract.