Walgreens Boots Alliance (NYSE:WBA) on Thursday beat fiscal third-quarter earnings estimates as higher prescription drug sales helped the company regain its footing after CEO Stefano Pessina dubbed last quarter “the most difficult” since the company was formed.
Walgreens reported adjusted earnings of $1.47 per share, beating analysts’ expectations of $1.43 per share. The drugstore chain posted $34.59 billion in sales. Analysts had expected $34.46 billion.
Revenue came in at $34.59 billion vs. $34.46 billion expected.
Walgreens reported fiscal third-quarter net income of $1.03 billion, or $1.13 per share, down 12.1% from the $1.34 billion, or $1.35 per share, the company reported a year earlier. On an adjusted basis, Walgreens earned $1.47 per share, above the $1.43 per share analysts expected.
Sales in the quarter, which ended May 31, increased 0.7% from the year-ago quarter, or 2.9% after accounting for fluctuations in currency rates.
Walgreens attributed the increase to growth in its U.S. retail pharmacy business and pharmaceutical wholesale business. Sales in its U.S. drugstores open for at least a year fell 1.1% from the year-ago quarter, which Walgreens attributed to its scaling back on selling tobacco products.
Walgreens maintained its full-year forecast of earnings to be roughly flat. The company cut its outlook last quarter from the previously guided 7% to 12% growth.
Walgreens has signed more than a dozen partnerships, with companies like Sprint (NYSE:S), FedEx (NYSE:FDX), Kroger (NYSE:KR) and LabCorp, (NYSE:LH) mainly aimed at driving more traffic into its stores.
Shares jumped $2.14, or 4.1%, to $54.52
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