CVS profit misses estimates as retail sales growth slows

CVS Health Corp. missed analysts' second- quarter earnings expectations as retail sales growth slowed.

Profit excluding one-time items was $1.19 a share, 1 cent below the average of analyst estimates compiled by Bloomberg. Sales rose 7.4 percent to $37.2 billion, the Woonsocket, Rhode Island-based company said in a statement. That was in line with analysts' estimates.

The company also narrowed its full-year adjusted earnings forecast to $5.11 to $5.18 a share from a previous forecast of $5.08 to $5.19 a share. Analysts had projected $5.17 a share.

CVS, the largest provider of prescription drugs in the U.S., is expanding beyond its retail roots with two second-quarter acquisitions. They're part of a record year for the health care industry, with consolidation affecting insurers and drugmakers.

In May, CVS agreed to purchase nursing-home pharmacy Omnicare for $12.7 billion, expanding services to the country's elderly. Less than four weeks later, CVS struck a deal to acquire Target Corp.'s pharmacies and clinics for $1.9 billion, putting its brand, which includes OneMinute Clinics, in retail locations across 47 states.

Pharmacy services revenue rose 12 percent in the second quarter to $24.4 billion, the company said.

Front-of-store sales for locations that have been open at least a year dropped 7.8 percent, reflecting the company's decision to stop selling tobacco products.