CVS Health posts earnings increase amid industry consolidation

Drug-store giant CVS Health reported increases in revenue and profit for the third quarter as the spotlight turns to the proposed combination of the company's two chief competitors.

CVS, the largest drug story in the U.S., posted a 10.3% increase in net revenue, compared to the same period a year earlier, to $38.6 billion. The company got a boost from its $12.7 billion acquisition of pharmacy services provider Omnicare, a deal that was completed Aug. 18 and provided a third-quarter bump.

The drug-store landscape took a sharp turn this week with the news that the second-largest chain, Walgreens, would acquire the third-largest chain, Rite Aid. The deal, which must get regulatory approvals, won't close until at least the second half of 2016.

But the deal will put pressure on CVS to maintain market share in a rapidly shifting industry.

For the third quarter, the company's net income rose 31.4% to $1.25 billion, and adjusted earnings per share excluding acquisitions was $1.29. The company had projected adjusted EPS of $1.27 to $1.30.

CVS split the Omnicare revenue largely into two buckets: specialty pharmacy operations goes to the company's pharmacy services segment, while senior care revenue goes into the retail and long-term care segment.

The company's pharmacy services division reported a 13.3% increase in revenue to $25.5 billion, fueled in part by a 9.3% increase in pharmacy network claims, which included managed Medicaid business.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.