Drugstore operator Walgreen Co. said Tuesday its fiscal fourth-quarter earnings jumped 69 percent, boosted in part by a gain from the $525 million sale of its pharmacy benefits management business.
The Deerfield, Ill., company said in March it was selling the business to Catalyst Health Solutions Inc. That deal was completed in June, and Walgreen recorded an after-tax gain in the quarter of 30 cents per share.
Walgreen also was helped by sales growth at stores open at least a year, as it earned $792 million, or 87 cents per share, in the quarter that ended Aug. 31. That compares with net income of $470 million, or 49 cents per share, in last year's quarter. Adjusted earnings, which exclude the sale gain, were 57 cents per share, and that topped Wall Street expectations.
Analysts surveyed by FactSet expected, on average, earnings per share of 55 cents for the quarter.
Walgreen said earlier this month its revenue climbed more than 6 percent to nearly $17.94 billion. Sales at stores open at least a year rose 4.3 percent, with pharmacy revenue up 4.2 percent and front-end revenue rising by 4.7 percent.
Sales from locations open at least a year is a key indicator of a retailer's long-term health because it excludes stores that recently opened or closed.
Walgreen is the largest drugstore chain in the United States with more than 7,700 stores.
