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CVS cuts full-year profit forecast, shares slump

Pedestrians walk past a CVS Health Corp. store in Chicago, Illinois, U.S., on Sunday, Nov. 6, 2016.
Christopher Dilts | Bloomberg | Getty Images
Pedestrians walk past a CVS Health Corp. store in Chicago, Illinois, U.S., on Sunday, Nov. 6, 2016.

Drugstore chain CVS Health cut its 2016 adjusted earnings forecast, citing slowing prescription growth and pharmacy network changes that will cause retail prescriptions to begin migrating out of its pharmacies this quarter.

Shares of the No. 2 U.S. drugstore chain by store count were down about almost 12 percent at $73.53 in on Tuesday.

Rival Walgreens Boots Alliance's shares were down about 1.7 percent. CVS cut its 2016 adjusted earnings forecast to $5.77 to $5.83 per share from its prior forecast of $5.81 to $5.89 per share.

Analysts on average had expected earnings of $5.85 per share, according to Thomson Reuters I/B/E/S.

Net income attributable to CVS rose to $1.54 billion, or $1.43 per share, in the third quarter ended Sept. 30, from $1.25 billion, or $1.11 per share, a year earlier.

Excluding items, CVS earned $1.64 per share.

Net sales rose 15.5 percent to $44.62 billion, helped by strong demand for its pharmacy benefit management services, but missed the average analysts' estimate of $45.29 billion.