Health services division drives CVS through strong third quarter

A strong performance from the health services division of CVS on top of cost-cutting pushed third quarter profits and revenue above expectations. While the drug store chain stuck to its adjusted per-share expectations for the year, it lowered guidance for adjusted earnings per share. Revenue from the health services business, which includes pharmacy benefit management, rose 7.8% to $46.89 billion. The company said growth across across all product lines pushed total quarterly revenue up 10.6% to $89.76 billion, easily topping Wall Street expectation. Quarterly net income was $2.26 billion, or $1.75 per share. Earnings, adjusted for one-time gains and costs, came to $2.21 per share, also better than the $2.13 that Wall Street had expected.