Early on Tuesday, retail drugstore chain Walgreen Company (WAG) reported that its second quarter profit rose despite stagnant sales. Adjusted net income was able to top Wall Street views, while revenue missed.
The Deerfield, Illinois-based company said its second quarter earnings were $756 million, or 79 cents per share, up 11% from $683 million, or 78 cents per share, earned in the same quarter a year ago. Last year’s earnings benefited from one extra day of business due to leap year.
Adjusting for certain items, net earnings came in at $915 million, or 96 cents per share, versus adjusted net earnings of $767 million, or 88 cents per share, in the year-ago period. According to analysts polled by Thomson Reuters, the company was expected to earn 94 cents per share.
Sales for the second quarter were flat compared to the previous year, coming in at $18.65 billion. Analysts were expecting sales at Walgreens to be $18.72 billion.
Furthermore, front end comparable store sales decreased 2.6% in the quarter, while customer traffic in comparable stores decreased 5.2%. Total comparable store sales decreased 2.6%.
Walgreens shares were up 73 cents, or +1.72%, during pre-market trading on Tuesday. The stock is up +24.03% over the past year.
The Bottom Line
Shares of Walgreens (WAG) have a dividend yield of 2.59% based on last night’s closing price of $42.43 and the company’s annualized dividend payout of $1.10 per share.
Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.