Walgreens Boots Alliance Q1 Profit Tops Estimates; Raises Low End Of EPS Outlook

(RTTNews) - Walgreens Boots Alliance, Inc. (WBA) reported that its first-quarter net earnings attributable to company increased 30.6 percent to $1.1 billion compared with the same quarter a year ago, while GAAP net earnings per share increased 13.5 percent to $1.01.

Adjusted first-quarter net earnings attributable to Walgreens increased 51.1 percent to $1.1 billion from last year. Adjusted net earnings per share for the quarter increased 32.1 percent to $1.03.

On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.96 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 48.5 percent to $29.0 billion compared with the same quarter a year ago, largely due to the inclusion of Alliance Boots consolidated results. Analysts expected revenue of $29.24 billion for the quarter.

Executive Vice Chairman and CEO Stefano Pessina said, "Our ongoing work to control costs across Walgreens Boots Alliance and improve adjusted operating income margins is growing earnings overall. Although it is early in the year, we are on track to deliver against our expectations."

Walgreens Boots Alliance's proposed acquisition of Rite Aid Corporation is progressing as planned. Walgreens continues to expect the transaction to close in the second half of calendar 2016.

Walgreens said the company is raising by 5 cents per share its low end of guidance for fiscal year 2016 anticipated adjusted net earnings per share attributable to Walgreens Boots Alliance to $4.30 to $4.55. The company noted that the guidance continues to assume no material accretion from the proposed acquisition of Rite Aid.