Walgreens Boots Alliance Inc. (NASDAQ: WBA) reported its second-quarter earning result on Tuesday. The profit beat estimates while revenue fell short of expectations as a weaker-than-expected flu season.
The Deerfield, Ill., company said that the profit fell to $930 million, or 85 cents s share, in the quarter ending in February this year. Excluding the merger-related gain and other items, earning rose to $1.31 a share from $1.18 a share a year earlier, beating analysts’ estimates of $1.28 a share.
Overall sales rose 14 percent to $30.18 billion from $26.57 billion a year earlier, but still fell short of analysts’ expectation of $30.66 billion. The high expectation comes from the Alliance Boots deal at the end of 2014. Analyst had expected that the acquisition would help boost sales.
"We view this as a good performance, particularly given the weak cough, cold, flu season this year," global Chief Financial Officer George Fairweather told analysts during a conference call.
The same-store sales rose 2.2 percent in its most recent quarter, marking the slowest growth in about three years.
Walgreens is buying rival Rite Aid Corp for $9.4 billion. Rite Aid is the third-biggest pharmacy chain in U.S. The combined company will double its store count in U.S. Walgreens said Tuesday that the deal is on track to close in the second half of this year.
The company is still optimistic on the outlook of the company. The Chief Executive Stefano Pessina said Tuesday that Walgreens is on pace to meet its expectations for the year. For the fiscal year ending in August, the company projects $4.35 to $4.55 in adjusted earnings per share. Earlier, the low end of that range was $4.30. Analysts have projected $4.48 a share.
Walgreens shares fell 3.59 percent to $83.17 at 12:26 p.m. in New York.