More on CVS Caremark's tobacco exit play

|About: CVS Health Corporation (CVS)|By:, SA News Editor

CVS Caremark (CVS) says it will stop selling tobacco products by October 1, 2014.

The company estimates it will lose $2B in annual revenue and $0.17 in profit per year. The impact on 2014 EPS will be $0.06-$0.08.

The end game is that CVS could be in a much position than Walgreen (WAG) or Rite Aid (RAD) to strike deals with medical groups and insurance companies.

CVS -1.7% premarket