REUTERS/Mike Segar
A CVS pharmacy is seen in New York City July 28, 2010. CVS Caremark Corp reported lower second-quarter earnings and cut its 2010 profit forecast, hurt by a decline in revenue from its pharmacy services segment, sending its shares down 5 percent.
This is why it's huge news today that CVS Caremark announced it would soon stop selling tobacco products at its more than 7,600 stores.
In its announcement, management warned that it will lose around $2 billion in annual revenues from this decision. That breaks down to around $1.5 billion in tobacco sales and $500 million in sales of other products to tobacco customers., or around 17 cents per share.
In fiscal 2012, CVS had $123 billion in net sales and earned $3.03 per share from continuing operations.
Shares are down by around 1.6% in premarket trading.