CVS Caremark earnings call: Don't sweat tobacco exit

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

Tobacco was a major topic during CVS Caremark's (CVS +2.9%) earnings call this morning.

Execs say the exit from the category will align the company with the goals of patients, clients, and providers.

Of note, 2014 EPS guidance and five-year financial targets are unchanged despite the new strategy which will send some customers to other retail chains.

The tone from management suggests that the company is already seeing a general trend toward pharmacy sales outpacing front-end sales so the tobacco play might be less dramatic than feared by some.

Earnings call webcast