Walgreens Q3 earnings top Street; same-store sales flat
Walgreens Boots Alliance topped analysts’ earnings expectations amid stock repurchases even as its same-store sales disappointed.
For the third quarter ended May 31, Walgreens earnings increased to $1.34 billion from $1.16 billion in the year-ago period. Adjusted earnings totaled $1.53 per share. Analysts had forecast earnings of $1.47 per share.
Sales rose 14% to $34.33 billion, also better than expected. In its U.S. retail pharmacy division, sales rose 15% to $25.9 billion. Same-store sales decreased 1.2%, compared with the same quarter a year ago.
Pharmacy sales, which accounted for 72.5% of the division’s sales in the quarter, increased 19.3% compared with the year-ago quarter, primarily due to higher prescription volume from the acquisition of Rite Aid stores and from central specialty. Pharmacy same-store sales remained flat.
Retail sales increased 5.2% during the quarter, while same-store sales fell 3.8%
During the quarter, the company completed the acquisition of all 1,932 Rite Aid stores. It expects to transition three distribution centers and related inventory beginning in fiscal 2019, and to complete the integration of acquired stores and related assets by the end of fiscal 2020.
In addition, Walgreens has authorized a $10 billion share repurchase program. It also declared a quarterly dividend of 44 cents per share, an increase of 10%, and raised the lower end of its earnings forecast for fiscal 2018 by 5 cents per share.
For the third quarter ended May 31, Walgreens earnings increased to $1.34 billion from $1.16 billion in the year-ago period. Adjusted earnings totaled $1.53 per share. Analysts had forecast earnings of $1.47 per share.
Sales rose 14% to $34.33 billion, also better than expected. In its U.S. retail pharmacy division, sales rose 15% to $25.9 billion. Same-store sales decreased 1.2%, compared with the same quarter a year ago.
Pharmacy sales, which accounted for 72.5% of the division’s sales in the quarter, increased 19.3% compared with the year-ago quarter, primarily due to higher prescription volume from the acquisition of Rite Aid stores and from central specialty. Pharmacy same-store sales remained flat.
Retail sales increased 5.2% during the quarter, while same-store sales fell 3.8%
During the quarter, the company completed the acquisition of all 1,932 Rite Aid stores. It expects to transition three distribution centers and related inventory beginning in fiscal 2019, and to complete the integration of acquired stores and related assets by the end of fiscal 2020.
In addition, Walgreens has authorized a $10 billion share repurchase program. It also declared a quarterly dividend of 44 cents per share, an increase of 10%, and raised the lower end of its earnings forecast for fiscal 2018 by 5 cents per share.