Summary of Walgreen Company's 1Q14 Earnings Call
Walgreen Co. (NYSE: WAG) held its first quarter 2014 earnings call on Friday.
First Quarter Results:
- Walgreen's quarterly profit surged to $695 million, or $0.72 per share, versus a year-ago profit of $413 million or $0.43 per share.
- The company reported Q1 EPS of $0.72 vs $0.73 Est.
- Revenue was $18.33 billion versus the estimated $18.33 billion.
- Adjusted earnings came in at $0.72 per share.
- Net sales climbed to $18.33 billion from $17.32 billion.
- Q1 EPS came in at $0.72 versus the estimated $0.73, missing by $0.01. EPS were Up 24% from the same quarter last year.
- Sales were Up 6% year over year.
Summary of Earnings Call:
- Walgreen's filled a record 213 million prescriptions in the quarter and increased pharmacy market share 50 basis points to 19.4% year over year.
- The company opened an innovative new store with Johns Hopkins Medicine, which President and CEO Gregory Wasson commented, “will allow us to co-develop clinical initiatives designed to improve community health care that we intend to pull throughout the chain.”
- Wasson noted, “we are generally satisfied with our top-line results, our cost management and our synergy performance this quarter. Our margins, however, were most significantly affected by the year-over-year negative impact related to generics.”
- Walgreens and Theranos rolled-out groundbreaking new lab services with the opening of Theranos Wellness Centers in two stores in Phoenix.
- The company administered 1.1 million more flu shots than we did last year, bringing the total for the season to-date, to 6.4 million.
- Script comp was up 5.5% in the quarter and retail pharmacy market share increased 50 basis points to 19.4% year-over-year. Walgreen's exceeded the industry prescription growth rate in the quarter by 2.9 percentage points and filled a record 213 million prescriptions.
- Comp prescription sales increased 7.2%. Comp front-end sales increased 2.4% and total comp store sales increased 5.4%. Comp prescriptions filled increased 5.5% versus the script comp of negative 4.8% last year.
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