Walgreens Raises Lower End Of FY16 Adj. EPS Guidance; Q3 Profit Beats Estimates

(RTTNews) - Walgreens Boots Alliance, Inc. (WBA) raised the lower end of its guidance for fiscal year 2016 by 10 cents per share and now anticipates adjusted net earnings per share attributable to company of $4.45 to $4.55. In April, the company projected its fiscal 2016 earnings to be in a range of $4.35 to $4.55 per share. Analysts polled by Thomson Reuters expect the company to report profit per share of $4.49. Analysts' estimates typically exclude special items. The company noted that the guidance assumes no impact from the proposed acquisition of Rite Aid and related financing, and assumes current exchange rates for the rest of the fiscal year.

Walgreens reported that its third-quarter adjusted net earnings attributable to company increased 14.7 percent to $1.3 billion. Adjusted earnings per share increased 15.7 percent to $1.18. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $1.14 for the quarter.

Third-quarter net earnings attributable to Walgreens decreased 15.3 percent to $1.1 billion compared with the same quarter a year ago. EPS decreased 14.4 percent to $1.01. Walgreens said the decreases in GAAP net earnings and GAAP net earnings per share reflect fluctuations in the quarterly fair value adjustments of the company's AmerisourceBergen Corporation warrants.

Net sales in the third quarter were $29.5 billion, an increase of 2.4 percent over the year-ago quarter, or 3.3 percent on a constant currency basis. Analysts expected revenue of $29.71 billion for the quarter.

CEO Stefano Pessina said, "I'm pleased to report that since the quarter end we achieved our goal set four years ago of at least $1 billion in combined net synergies in fiscal year 2016 related to the strategic combination with Alliance Boots."

Walgreens said its proposed acquisition of Rite Aid Corporation, which was announced 27 October 2015, is progressing as planned. Walgreens said the company is continuing its integration planning and continues to expect the Rite Aid transaction to close in the second half of calendar 2016.