Walgreen Records 4Q Loss As Expected
- Updated: September 30, 2014
Shares of Walgreen Company (NYSE:WAG) are down fractionally to $59.03 on moderately high-volume after the company reported a $239 million loss in its fiscal fourth quarter, the result of incurring a huge accounting charge from its Alliance-Boots acquisition. The results met Wall Street expectations
Walgreen Company (NYSE:WAG) has traded in a range from $54.11 to $76.39 over the past 52 weeks and currently trades to a PE of 20. The consensus price target for the stock is $72 according to analysts.
Walgreen Co. said that it recorded a non-cash loss of $866 million in the quarter that ended Aug. 31 because it decided to exercise early its option to buy the remaining stake of Alliance-Boots that it did not already own.
It had until next year to decide whether to buy the rest of Alliance Boots, which runs the largest drugstore chain in the United Kingdom.
Walgreen bought a 45 percent stake in Swiss health and beauty retailer Alliance Boots in 2012.
Overall, Walgreen lost $239 million, or 25 cents per share, in the quarter. That compares to a gain of $657 million, or 69 cents per share, in last year’s quarter. Adjusted results, which do not include the Alliance Boots charge, totaled 74 cents per share.
The company posted a better-than-expected 6.2 percent rise in quarterly sales as prescription sales rose 9.3 percent in the fourth quarter ended Aug. 31.
Walgreen ended the year with a record 856 million filled prescriptions
Walgreen Company (NYSE:WAG) together with its subsidiaries, operates as a retail drugstore chain in the United States.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.