Walgreens beats analysts' forecasts
U.S. drugstore company Walgreens Boots Alliance Inc.'s profit and revenue beat analysts' estimates in the fourth quarter, as it benefited from an expansion of mail services.
Deerfield-based Walgreens said it expects 2018 adjusted earnings of $5.40 to $5.70 per share, largely above analysts' average estimate of $5.47.
Walgreens earlier this year formed a combined specialty pharmacy and mail services company called AllianceRx Walgreens Prime.
Its mail services business helped Walgreens fill more prescriptions in the fourth quarter ended Aug. 31, in which revenue rose 5.3 percent to $30.15 billion. Analysts had expected $29.93 billion.
Net income attributable to Walgreens fell 22 percent to $802 million or 76 cents per share, hurt mainly by a more than $300 million fee it paid Rite Aid Corp after their failed attempt to merge.
Walgreens in June abandoned its deal to buy Rite Aid after failing to get approval from regulators. Walgreens instead struck a deal to buy nearly half of its smaller rival's U.S. stores.
"We are pleased to report the company has performed well, with our businesses delivering significant progress while managing against ongoing prescription reimbursement pressure and competing in fast-changing retail environments. We look forward to building on this solid underlying growth in the year to come, enhanced by the expansion of our U.S. retail pharmacy network through the upcoming purchases of Rite Aid stores," said Stefano Pessina, executive vice chairman and CEO.