Walgreens tops fiscal 2Q forecasts as private equity buyout awaits

The drugstore concatenation booked pharmacy income gains, and its struggling VillageMD session concern delivered a smaller equilibrium expanse deed successful the precocious concluded quarter.

Overall, Walgreens said Tuesday that it mislaid $2.85 cardinal compared to a $5.91 cardinal nonaccomplishment successful the erstwhile year’s quarter. Adjusted results not counting one-time items totaled 63 cents per stock successful the astir caller quarter. Sales grew 4% to $38.59 billion

Analysts expected fiscal second-quarter net of 53 cents per stock connected astir $38 cardinal successful revenue, according to the information steadfast FactSet.

Walgreens said successful March that it had agreed to beryllium acquired by the backstage equity steadfast Sycamore Partners successful a woody with an equity worth of conscionable nether $10 billion.

The buyout came arsenic the drugstore concatenation deals with a big of problems including bladed medicine reimbursement, rising costs and a VillageMD session concern that has struggled to summation traction with patients.

The Deerfield, Illinois, institution is cutting costs and closing stores. In January, It said it was suspending a quarterly dividend it has offered for much than 90 years.

In its fiscal 2nd quarter, income from Walgreens’ established U.S. pharmacies jumped 12%, helped partially by much prescriptions. But retail income successful those stores slipped astir 3%.

Walgreens Boots Alliance Inc. besides runs astir 3,700 planetary stores, with locations successful the United Kingdom, Mexico, Thailand and Ireland. The U.S. conception is the biggest portion of its business.

In the caller quarter, Walgreens said its operating nonaccomplishment included a $3 billion, non-cash impairment complaint tied partially to its VillageMD business. That compares to a complaint of much than $12 cardinal successful the erstwhile year’s quarter.

Walgreens withdrew its yearly forecast owed to its pending woody and did not big a league telephone with analysts to sermon results.

Company shares precocious 19 cents to $10.90 Tuesday greeting portion marketplace indexes staged a bigger rally from losses Monday.