Walgreen 4Q earnings call roundup

Walgreen Co. reported a fourth quarter net loss of $239 million, or 25 cents per share, compared with earnings of $657 million, 69 cents per share, for the same period last year. In the quarter, Walgreen absorbed an $866 million accounting charge from an early exercising of its option to buy the remaining 55 percent of Alliance Boots it does not already own. Excluding this event and other items, adjusted earnings-per-share were in-line with expectations at 74 cents, but despite meeting analysts’ expectations, there were few bright spots in management’s report. The benefits from Walgreen’s top line growth were largely offset by a significant reduction in gross margin.

Walgreen management discussed a number of issues that will continue to influence performance next year, including reimbursement pressure for prescription drugs, price inflation for generic medication and shrinking traffic on the store’s front end.

The earnings call comes a little over a month after the company shocked investors with a $2 billion forecasting blunder that cost two executives their jobs.

Following the difficult quarter, investors and observers are asking what the future holds for Walgreen.

Walgreen posts 4Q loss on Alliance Boots charge
Associated Press

No relief in sight for what ails Walgreen
Crain’s Chicago Business

Walgreen Profit Remains Pressured by Drug Price Miscalculation
Wall Street Journal

Higher generic drug prices, lower reimbursements to hurt Walgreen margins
Reuters

Walgreen suffers 4Q loss on acquisition charge
Chicago Tribune

News Roundup: Walgreen Boots Alliance

When the news leaked last Tuesday that Walgreens would not seek a tax inversion, media outlets jumped to cover this latest twist in the inversion summer saga. The next morning, the company confirmed it will not move to Europe as part of its planned takeover of Alliance Boots. Since then, the press has spent a lot of ink dissecting the inversion that wasn’t.

The wave of news coverage is a lot to keep tabs on, which is why we’ve compiled some of the best stories about Walgreens’ decision not to re-domicile below.

Walgreens Shuns Inversion In £5bn Boots Deal
Sky News

Activists applaud Walgreen decision
Red Eye Chicago

Reports: Walgreens won’t tap lucrative tax loophole
USA Today

Double Punch for ‘Inversion’ Deals
Wall Street Journal

Walgreen CEO: Leaving U.S. wasn’t in best interest of shareholders
Chicago Tribune

Continue reading