UPDATE 1-Longs Drug Stores 2nd qtr profit up

(Adds analysts' view, unit details, NEW YORK dateline)

NEW YORK, Aug 20 (Reuters) - Longs Drug Stores LDG.N reported a higher second quarter profit on Wednesday, helped by a slight increase in retail drug store sales and rapid growth in its pharmacy benefit services unit.

The company, which has agreed to be bought by CVS Caremark Corp (CVS.N) for $2.54 billion, said its preliminary net income rose to $27.5 million, or 76 cents per share, from $26.6 million, or 69 cents per share, a year earlier.

Excluding items, Longs profit was 78 cents per share, slightly ahead of the average analysts' forecast of 77 cents per share for the quarter ended July 26, according to Reuters Estimates.

CVS Caremark announced on August 12 its plan to purchase Longs in a deal which would sharply raise CVS's profile in California and broaden its prescription services.

Longs, which competes with CVS as well as Walgreen Co (WAG.N) and Rite Aid (RAD.N), said revenue rose 4.6 percent to $1.33 billion, below the $1.35 billion expected by analysts.

Longs said revenues for its pharmacy benefit services division, which negotiates drug prices for health plans and businesses, increased 66.3 percent to $131.3 million, while retail drug store sales increased 0.5 percent to $1.2 billion.

Pharmacy same-store sales were down 0.6 percent while front-end same-store sales fell 1.6 percent.

Shares of the Walnut Creek, California-based company, which operates stores on the West Coast and Hawaii, fell slightly to $72.04 from its close of $72.10 on the New York Stock Exchange. (Reporting by Sarah Coffey; editing by Carol Bishopric)