CVS beats on profit as prescription sales surge

Federated Investors Chief Equity Market Strategist Phil Orlando on earnings season, the outlook for the tech sector and the U.S. economy.

May 2 (Reuters) - CVS Health Corp posted a better-than-expected first-quarter profit on Wednesday, helped by higher sales of prescription drugs at its stores and lower tax rates.

Overall revenue from the company's retail business increased 5.6 percent to about $20.4 billion.

The increase was primarily due to an increase in same store prescription volume of 8.5 percent, the company said.

Same-store sales at its over-the-counter retail business increased 1.6 percent, partly driven by a severe flu season.

The company is in the process of buying health insurer Aetna Inc for $69 billion in a move that will shake up the U.S. pharmacy business.

Excluding items, it earned $1.48 per share, beating analysts' estimates of $1.41, according to Thomson Reuters I/B/E/S.

Net income attributable to the company rose to $998 million, or $0.98 per share, in the first quarter ended March 31 from $952 million, or $0.92 per share, a year earlier.

Net revenue rose 2.6 percent to $45.69 billion. (Reporting by Manas Mishra in Bengaluru; Editing by Anil D'Silva)