Walgreen 1Q profit rises 20 percent on drug sales
Deerfield-based drugstore operator Walgreen Co. said Monday its fiscal first-quarter profit jumped 20 percent, mainly on higher prescription drug sales and from flu shots, topping Wall Street forecasts.
The company earned $489 million, or 49 cents per share, up from $408 million, or 41 cents per share, a year prior. Revenue rose 9.5 percent to $16.36 billion from $14.95 billion. The fiscal 2010 first quarter ended in November and included 3 cents per share in restructuring costs.
"We're extremely pleased to report solid, double-digit earnings growth," said Walgreens President and CEO Greg Wasson.
Wall Street forecasts called for 48 cents per share in profit on just under $16.3 billion in revenue, according to a survey by Thomson Reuters.
Flu shots helped boost front-end sales, the company said, though demand tapered off in November. The company administered more than 5 million flu shots between September and November, compared with 1.2 million the previous flu season.
Walgreen also said the recession had a negative impact on holiday sales.
"Consumer concerns over high unemployment and the challenging economy were a drag on holiday sales at the end of November, and we've seen a similar pattern through mid-December," President and CEO Greg Wasson said in a statement.
He said the company's holiday performance is driven by the final shopping days.
In premarket trading, Walgreen shares changed hands at $37.84, up from Friday's close of $36.64.
Daily Herald staff writer Kim Mikus contributed to this report.