WOONSOCKET, R.I. (AP) — CVS Caremark Corp. said Thursday that its first-quarter net income fell nearly 8 percent on lower margins and higher costs.

The Woonsocket, R.I., company said its profit fell to $713 million, or 52 cents per share, from $771 million, or 55 cents per share. Its revenue grew 9 percent to $25.88 billion from $23.76 billion.

Excluding acquisition and other charges, the company said it earned 57 cents per share. FactSet said analysts expected a profit of 55 cents per share and $25.76 billion in revenue.

Revenue from the company's retail stores rose 4.4 percent to $14.6 billion, while revenue at stores open at least a year rose 2.6 percent. Revenue from the Caremark pharmacy benefits management business rose 18.4 percent to $14 billion with the addition of a contract with Aetna.

Meanwhile, the cost of revenue rose 11 percent to $21.13 billion while operating expenses rose 3 percent to $3.44 billion. The company said its lower gross profit was the result of lower prices for contract renewals, including a government contract that took effect in 2010.

Looking ahead, CVS Caremark expects full-year profit between $2.72 and $2.82 per share excluding items and discontinued operations. Analysts expect $2.77 per share in profit in 2011.