Walgreen (WAG) Beats Q3 Views, Express Scripts (ESRX) Decision Weighs
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Price: $76.05 --0%
Financial Fact:
Net earnings per common share - basic: 0.86
Today's EPS Names:
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Financial Fact:
Net earnings per common share - basic: 0.86
Today's EPS Names:
More
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Walgreen Co. (NYSE: WAG) shares are looking a little weak today, following third-quarter earnings results from the Deerfield, IL-based retail pharmacy giant, led by sales in consumables, cough/cold, pain/sleep, personal care and beauty categories.
Turnover in the quarter grew 6.8 percent, from $17.20 billion to $18.37 billion, which came in slightly ahead of the $18.33 billion consensus. Comparable-store sales grew 4.1 percent in the quarter.
Net income was $603 million, or 65 cents per diluted share, a 30 percent jump from $463 million reported in the same period last year. The Street was looking for more modest earnings of 62 cents per share. Notably, this year's earnings number includes a one-cent impact from "restructuring and restructuring-related costs associated with the company’s Rewiring for Growth initiative."
SG&A in the period increased 7.2 percent to $4.203 billion.
Finally, Walgreens opened or acquired 41 new drugstores (a net gain of 25 after relocations and closings) in the third quarter compared with 361, including 258 Duane Reade drugstores (or a net gain of 342) in the year-ago quarter.
Looking ahead, Walgreens expects organic store growth of between 2.5 and 3 percent in FY11.
Separately, Walgreen announced that it could not reach an agreement on renewal negotiations with Express Scripts (Nasdaq: ESRX). As a result, "Express Scripts’ network would no longer include Walgreens 7,700 pharmacies nationwide, including Walgreens more than 250 Duane Reade pharmacies in the New York City area."
Walgreen is trading about 1.5 percent lower ahead of the bell.
Turnover in the quarter grew 6.8 percent, from $17.20 billion to $18.37 billion, which came in slightly ahead of the $18.33 billion consensus. Comparable-store sales grew 4.1 percent in the quarter.
Net income was $603 million, or 65 cents per diluted share, a 30 percent jump from $463 million reported in the same period last year. The Street was looking for more modest earnings of 62 cents per share. Notably, this year's earnings number includes a one-cent impact from "restructuring and restructuring-related costs associated with the company’s Rewiring for Growth initiative."
SG&A in the period increased 7.2 percent to $4.203 billion.
Finally, Walgreens opened or acquired 41 new drugstores (a net gain of 25 after relocations and closings) in the third quarter compared with 361, including 258 Duane Reade drugstores (or a net gain of 342) in the year-ago quarter.
Looking ahead, Walgreens expects organic store growth of between 2.5 and 3 percent in FY11.
Separately, Walgreen announced that it could not reach an agreement on renewal negotiations with Express Scripts (Nasdaq: ESRX). As a result, "Express Scripts’ network would no longer include Walgreens 7,700 pharmacies nationwide, including Walgreens more than 250 Duane Reade pharmacies in the New York City area."
Walgreen is trading about 1.5 percent lower ahead of the bell.
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