Walgreens Boots Alliance tops 3Q net income expectations, misses revenue

Walgreens Boots reported actual earnings last quarter of 1.18 which beats the 0.95 consensus estimate, a 24.20% surprise.

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Credit Suisse has come up with a report on Walgreens Boots Alliance Inc (NASDAQ:WBA) stock today in which the firm reviewed its outlook for the stock following the release of the company’s quarterly results. The company has an average rating of “Hold” and a consensus price target of $82.89. Our Retail Pharmacy U.S. division produced a solid enhance in comparable prescriptions filled in the quarter, together with improved retail front-end margins and very good cost control. BBY EPS growth in last 5 year was 1.40%.

Shares rose 4.2% in midday trading, adding to the 13% gain notched through Wednesday’s close. BCRX Gross Margin is 100.00% and its has a return on assets of -36.80%. The US company then announced past year that it would pay about $16 billion in cash and stock to buy the remaining stake in Alliance Boots that it did not already own.

“Through his leadership, our organisation is meeting the challenges of combining our two companies, and numerous opportunities we anticipated from our strategic combination are now becoming a reality”, Mr Skinner said. This is not to say that the wind is at the company’s back; that is hardly the case as pharmacy reimbursement pressures in the United States are considerable. Long-term debt was $15.1 billion, compared with $3.7 billion as of August 31, 2014. A block trade of $57.78 million in uptick and $2.09 million in downtick was also observed, resulting in an up/down ratio of 27.64.

Before the deal that created Walgreen Boots Alliance, Pessina had built his career in Europe, where the native of Italy established the pharmaceutical wholesale group Alliance Sante in 1977. And Walgreens also kept its previous 2016 bottom line expectations in place with a range of $4.25 to $4.60 in per-share profit.

The Deerfield, Illinois, company also said it was cutting about 700 jobs outside stores in its global retail pharmacy business. The increased dividend is payable on September 11, 2015 to stockholders of record on August 19. The company has a market cap of $93,139 million and there are 1,090,752,000 shares in outstanding.

Analyst John Ransom raised Walgreens’ WBA, +3.98% rating to outperform from market perform and set a $105 price target. A site devoted to reporting the “whisper” number, or what Wall Street really expects the company to earn, puts third-quarter WBA EPS at 94 cents.

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The choice of Pessina as CEO is not a huge surprise, given his experience as chairman of Alliance Boots and interim CEO of Walgreens.

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