Pharmacy benefits manager beats estimates on earnings
22-Feb-2007: Caremark Rx Inc.'s fourth-quarter profit beat Wall Street estimates and the pharmacy benefits manager, which is the target of competing takeover bids, says it expects its earnings will surpass current expectations for this year.
Caremark said its earnings for the fourth quarter rose 4 percent on higher retail revenue.
Caremark agreed to be acquired by the drugstore operator CVS Corp. in November 2006, but that deal has since stalled due to a hostile takeover bid by rival pharmacy benefits manager Express Scripts Inc., and objections from shareholders who say the CVS deal may not be in their best interest.
Caremark's profit totaled $301.5 million, or 71 cents per share, for the three months that ended Dec. 31, from $290.7 million, or 64 cents per share from the same year-ago period. Revenue rose 11 percent to $9.27 billion from $8.4 billion.
Zale Corp.: The jewelry retailer said its second-quarter profit edged up, the gain limited by one-time charges and flat revenue.
Profit for the quarter that ended Jan. 31 totaled $88.1 million, or $1.80 per share, compared with $87.8 million, or $1.78 per share, during the same period last year. Revenue grew 1 percent to $1 billion from $993.7 billion a year ago, which excludes results of the Bailey Banks & Biddle stores that were closed during the second quarter of 2006.
Abercrombie & Fitch: Earnings in the fourth quarter jumped 20 percent, powered by strong sales as the teen retailer continues to expand its Hollister line of stores that cater to teens with surfer-inspired looks.
Abercrombie said it made $198.2 million, or $2.14 per share, for the quarter ended Feb. 3 compared with profits of $164.6 million, or $1.80 per share, a year ago. Sales rose 18 percent to $1.14 billion from $960.4 million a year ago. Same-store sales for the quarter fell 3 percent.
For the year, the firm said sales increased 19 percent to $3.3 billion from $2.8 billion the previous year. Profits for the year rose $422.2 million, or $4.59 per share, a 26 percent increase from $334 million or $3.66 per share. The most recent fiscal year had 53 weeks, one more than the previous year.
Medtronic Inc.: The medical device maker said third-quarter earnings rose 6 percent on strong sales from outside the U.S., even as revenue for some heart devices dropped.
The company earned $710 million, or 61 cents per share, in the period that ended Jan. 26, compared with $670 million, or 55 cents per share, a year earlier. Revenue of $3.05 billion was up 10 percent from $2.77 billion a year ago.
Hewlett-Packard Co.: Quarterly profit jumped 26 percent as the company benefited from higher sales of laptop computers, printers and printing supplies during a robust holiday spending season.
HP said it earned $1.55 billion, or 55 cents per share, for the quarter that ended Jan. 31, compared with $1.23 billion, or 42 cents per share, for the same period last year. Revenue for the period was $25.1 billion.
Source: Arizona Republic
