Market Overview

Summary of Important Points from Walgreens' Conference Call

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Overview of Q4 Result:

• Adjusted earnings per diluted share of $0.85, and GAAP diluted EPS of $0.65

• Long-term relationship with AmerisourceBergen

• Cash flow from operations was $1.4 billion, with $1.1 billion in free cash flow

• On track to deliver $125 million to $150 million in combined synergies

• Sales landed at $18.3 billion, up 3.2 percent year over year

• GAAP operating income hit $991 billion, up 13.5 percent

• Non-GAAP adjusted operating income landed at $1.2 billion, an increase of 22.9 percent

• Non-GAAP adjusted net earnings recorded at $812 million compare to $628 million

• Comp prescription sales increased 2 percent, comp front-end sales increased 0.4 percent

• FIFO gross margin was 29.2 percent compared to 28.6 percent last year

Guidance for 2014

• Further adjustments to pricing and promotions, implementing a number of meaningful changes to the weekly ad

• Focusing on maximizing the value of the Balance Rewards program - turning the focus from enrollment to redemption and rewards

• Enhancing the store segmentation to better meet the local needs and preferences of each communities

Walgreen (NYSE: WAG) opened on Thursday at $45.24.

Posted-In: Earnings News Guidance Events Economics Markets Reviews


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