Walgreens Boot Alliance beats by $0.07, reports revs in-line; guides FY16 EPS below consensus at midpoint -- buybacks suspended to fund RAD purchase
- Reports Q4 (Aug) earnings of $0.88 per share, $0.07 better than the Capital IQ Consensus of $0.81; revenues rose 49.7% year/year to $28.52 bln vs the $28.52 bln Capital IQ Consensus.
- Fourth quarter total sales for the Retail Pharmacy USA division were $19.9 billion, an increase of 4.7 percent over the year-ago quarter. Total sales in comparable drugstores increased 6.5 percent compared with the same quarter a year ago. Comparable retail sales increased 0.4 percent in the fourth quarter with an increase in basket size partially offset by lower customer traffic compared with last year's fourth quarter.
- Fourth quarter total sales for the Retail Pharmacy International division were $3.5 billion. On a pro forma constant currency basis, comparable store sales in the fourth quarter increased 4.3 percent compared with the same period a year ago
- Co issues downside guidance for FY16, sees EPS of $4.25-4.55, excluding non-recurring items, vs. $4.55 Capital IQ Consensus Estimate. This guidance assumes no material accretion from the agreement to acquire Rite Aid (as covered separately yesterday), which is expected to close in the second half of calendar 2016, but reflects an adverse impact on adjusted earnings per share due to the suspension of the balance of the co's $3 billion share repurchase program to partly fund the transaction [estimates likely incorporate the previously planned buyback].