Earnings roundup

CVS Caremark Corp., the second-biggest US drugstore chain, said profit rose 7.1 percent on an increase in sales at its pharmacy counters.

Sales at the division that manages drug benefits for companies rose about 1 percent. The unit posted gross profit of $849.9 million, trailing the $891 million estimate of Meredith Adler, an analyst at Lehman Brothers Holdings Inc. in New York, and lower than a year ago.

Second-quarter net income jumped to $774.8 million, or 53 cents a share, from $723.6 million, or 47 cents, a year earlier, the company said in a statement. Excluding one-time costs, earnings matched the average estimate of analysts.

Sales rose 2.1 percent to $21.1 billion from $20.7 billion, short of the $21.5 billion average estimate of 14 analysts surveyed by Bloomberg News. Pharmacy sales increased 4.9 percent in the quarter.

CVS reiterated its full-year forecast of $2.44 to $2.50 a share, excluding some costs. Eighteen analysts estimate $2.46, on average. (Bloomberg)

Hologic Inc., a maker of equipment to diagnose and treat women's diseases, lost almost a fifth of its value after missing revenue estimates for the fiscal third quarter and again lowering its sales forecast for the year.

Hologic had its the biggest drop since Feb. 4, 2003.

The Bedford company reported revenue of $429.5 million in the quarter ended June 28, compared with the average estimate of $435.8 million in a Bloomberg survey of 14 analysts. Hologic also forecast revenue of $1.67 billion for the year, down from $1.7 billion forecast in May and $1.71 billion in January.

"Hologic has now disappointed in two consecutive quarters," said Peter J. Bye, an analyst at Jefferies & Co. in New York, in a note lowering his recommendation to hold from buy.

"The company has best-of-breed technology in its business segment and is well positioned in attractive market opportunities, but there are two business segments, breast health and gynecological surgical, which have not met expectations." (Bloomberg)

Kellogg Co., the largest US cereal maker, said second-quarter profit rose 3.7 percent after price increases blunted grain costs and advertising spurred sales.

Consumers bought Eggo waffles and Frosted Flakes cereal even as chief executive David Mackay, 52, raised prices to counter a 64 percent jump in wheat costs and higher prices for corn used to make cereals, snacks, and Pop-Tarts.

Net income climbed 3.7 percent to $312 million, or 82 cents a share, and revenue advanced 11 percent to $3.34 billion, the Battle Creek, Mich.-based company said.

The foodmaker said full-year profit would be $2.95 to $3 a share, higher than the $2.92 to $2.97 earnings it reaffirmed in April. Seventeen analysts predicted the company would earn $2.99 excluding some costs and gains. (Bloomberg)

Vertex Pharmaceuticals Inc. reported a smaller, but wider-than-expected, second-quarter net loss on higher collaboration revenue and lower costs associated with its experimental hepatitis C drug.

The Cambridge biotech firm said it expects a larger full-year loss than it had previously forecast and its shares fell more than 4 percent in extended trading.

It posted a net loss of $91.3 million, or 66 cents per share, compared with a loss of $117.8 million, or 91 cents per share, a year ago.

Analysts on average expected a loss of 59 cents per share, according to Reuters Estimates. Revenue jumped 82 percent to $69.4 million as Vertex received a $45 million milestone payment from Johnson & Johnson for beginning pivotal late-stage clinical trials of its telaprevir hepatitis C treatment.

Research and development costs fell to $127.1 million from $136.2 million due to expensive telaprevir trials that were underway in the year-ago quarter.

Vertex said it now expects a full-year net loss of $450 million to $470 million, including about $60 million in stock-based compensation and restructuring expense, up from its prior forecast for a net loss of $380 million to $410 million. (Reuters)