Walgreens Boots Alliance Inc. shares rose 3.3% in premarket trade Wednesday after the company reported fourth-quarter profit and revenue beats. Earnings for the latest quarter fell to $802 million, or 76 cents per share, from $1.03 billion, or 95 cents per share in the year-earlier period. Adjusted earnings-per-share were $1.31, above the FactSet consensus of $1.21. Revenue rose to $30.15 billion from $28.64 billion, above the FactSet consensus of $29.93 billion. The latest results include costs related to the company’s Rite Aid Corp. deal, largely merger termination fees, Walgreens said. Ownership of the Rite Aid stores is expected to transfer in phases, with a spring 2018 completion goal, Walgreens said. Integration of the stores and other assets is expected to be completed within the next three years at a cost of about $750 million, the company said, with an additional about $500 million spent on store conversions and related activities. Walgreens also expects to save $300 million in “annual synergies” through such things as procurement and cost savings within four years of the transaction closing. Walgreens has done well despite “ongoing prescription reimbursement pressure and competing in fast-changing retail environments,” Chief Executive Stefano Pessina said. The company expects 2018 adjusted EPS of $5.40 to $5.70, compared with the FactSet consensus of $5.40. Walgreens shares have plummeted 16% over the last three months, compared with a 3.7% rise in the S&P 500 .
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News