Walgreens Q3 Earnings Beat Views, Shares Surge

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jumped over 3 percent in pre-market trading after the company reported better-than-expected earnings for its fiscal third quarter and raised its full-year profit forecast. The company also lifted its quarterly dividend by 6.7 percent to $0.36 per share. The Deerfield, Illinois-based company posted quarterly net earnings of $1.3 billion, or $1.18 per share, compared to $714 million, or $0.74 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings came in at $1.02 per share. Its sales surged 48 percent to $28.8 billion. However, analysts were expecting earnings of $0.87 per share on revenue of $29.62 billion. The average estimate among 26 Estimize users was for earnings of $0.89 per share and revenue of $30.27 billion. Sales at its Retail Pharmacy USA division climbed 5.3 percent to $20.4 billion during the quarter. Sales at its Retail Pharmacy International division came in at $3.3 billion, while sales at its Pharmaceutical Wholesale division came in at $5.7 billion in the quarter. Executive Vice Chairman and CEO Stefano Pessina said, "In just six months since the strategic combination that formed Walgreens Boots Alliance, we are beginning to make progress in our operations, as we were able to deliver another strong quarter. Our Retail Pharmacy USA division produced a solid increase in comparable prescriptions filled in the quarter, along with improved retail front-end margins and very good cost control. Our other divisions continued to perform as we expected." Walgreens reported that it has acquired Liz Earle Beauty Co. Ltd. The company also named Stefano Pessina as CEO, effective immediately. Walgreens now projects full-year adjusted earnings of $3.70 to $3.80 per share, versus its earlier forecast of $3.45 to $3.65 per share. Walgreens shares rose 3.60 percent to $89.00 in pre-market trading.