CVS Health Corp., the parent of Longs Drugs, missed Wall Street’s revenue expectations in the third quarter, despite sales jumping due to acquisitions. The company trimmed its profit forecast for this year, triggering a stock sell-off.
The drugstore chain and pharmacy benefits manager also noted significant head winds that forced it to reduce its 2016 profit forecast by a nickel per share. Those include a soft seasonal business, slowing prescription growth in the overall market and recent pharmacy network changes expected to reduce the number of prescriptions filled at its pharmacies this year. Those network changes will have a bigger effect in 2017, CVS predicted.
Its shares fell $9.86, or 11.8 percent, to close at $73.53, with trading volume reaching nearly 10 times the daily average.
The operator of the second-largest U.S. drugstore chain reported a 23.5 percent boost in profit to $1.54 billion, or $1.43 a share. Revenue jumped 15.5 percent to $44.62 billion, getting a lift from a boost in prescription volume and higher retail sales at its drugstores. Still, that missed Street expectations for revenue of $45.31 billion.
Strong yen sends Toyota profit down 36%
TOKYO >> Toyota Motor Corp. reported Tuesday that its July-September profit sank 36 percent as a stronger yen eroded its overseas earnings. Lagging sales also pinched the Japanese automaker’s fiscal second-quarter profit, which fell to 393.7 billion yen ($3.8 billion) from 611.7 billion yen in the same period the previous year. Quarterly sales slipped nearly 9 percent to 6.48 trillion yen ($62.3 billion).
The manufacturer of the Prius hybrid, Camry sedan and Lexus luxury models expects to sell 10.1 million vehicles worldwide through March. Toyota has led world vehicle sales in recent years but this year is vying with German automaker Volkswagen AG and General Motors Co. for the top spot.
ON THE MOVE
The Hawaii Foodbank has appointed the following two new members to its board of directors:
Reggie Maldonado is a director/general manager of Pasha Hawaii.
Corey Wesley Correa is president and executive chairman of Landmark Logistics Corp.
Maui Memorial Medical Center and Kaiser Permanente have appointed Dr. Warren “Vic” Ayers as an orthopedic surgeon to Maui Memorial Medical Center. He previously served as assistant chief of orthopedics for the Permanente Medical Group in Kaiser Permanente’s Northern California region. Ayers also served various appointments for 30 years while in the Navy, including flight surgeon, emergency room physician and a resident orthopedist at U.S. Naval Hospital in San Diego.