Walgreens Boots Alliance Inc. reported results for its fiscal second quarter March 28 that beat analyst expectations, with adjusted EPS and net profit both clocking in above estimates.
Adjusted diluted EPS was $1.73, higher than the mean consensus estimate for normalized EPS of $1.55 compiled by S&P Capital IQ. Adjusted net earnings attributable to Walgreens Boots Alliance was $1.72 billion, 16.6% higher than the $1.48 billion it reported for the year-ago quarter and above the S&P Capital IQ mean consensus estimate for net income excluding expenditures of $1.54 billion.
The retail pharmacy chain also raised its guidance for full-year adjusted EPS. The Deerfield, Ill.-based company now expects adjusted diluted net earnings per share in a range between $5.85 and $6.05 for its entire 2018 fiscal year.
Across the entire company, sales for the three months to Feb. 28 were $33.02 billion, up from the $29.45 billion for the second quarter of 2017. Within Walgreens's Retail Pharmacy USA division, sales in comparable stores rose 2.4% from the year-ago period.
In the month since the end of the second quarter, Walgreens has completed its acquisition of 1,932 stores from Rite Aid Corp., according to a statement summarizing Walgreens's financial results for the quarter. Walgreens will take over three distribution centers and inventory connected with them during its 2019 fiscal year, the company said.
The companies received clearance for the sale from federal regulators in September 2017 after scrapping an earlier deal that would have sold all of Rite Aid's roughly 4,500 U.S. stores to Walgreens.