Wednesday, October 20, 2010

Flu Shot Slowdown Fails To Sink Walgreen

Sick shoppers have for full of health drugstores, according to Walgreens ultimate quarterly results, but the complaint for Walgreen in the ultimate entertain is that consumers were rather full of health and second-quarter gain fell short of analysts" expectationsSales of influenza vaccinations and cold remedies forsaken off as influenza deteriorate incited out to be weaker than anticipated. Walgreen ( WAG - news - people ) doled out only 2 million influenza shots in the second quarter, down from 5 million in the prior three-month period. emailprintreprintnewslettercommentssharedel.icio.usDigg It!yahooFacebookTwitterRedditrssforbes:http://www.forbes.com/2010/03/23/walgreen-cvs-caremark-markets-equities-pharmacies-rite-aid.html?partner=yahoobuzzThe Deerfield, Ill.-based association warranted $669 million, or 68 cents per share, up 4.5% from $640 million, or 65 cents per share, in the year-ago quarter. Excluding one-time restructuring charges, Walgreen warranted 70 cents per share. Sales for the duration finale Feb. twenty-eight climbed to $17 billion, up from $16.5 million in the second entertain of 2009. Wallgreen fell short of the estimates of analysts polled by Thomson Reuters, who likely gain of 71 cents per share on sales of $17.2 billion. Despite the miss, the drugstore operators shares ticked up 41 cents, or 1.2%, to $35.74 in Tuesday afternoon trading. Sales of front-end equipment similar to cosmetics, magazines and snacks fell 1.6% at stores open at slightest one year. Total same-store sales forsaken 0.2% in the second quarter. The one progress in the entertain came from medication sales, that jumped 3.2% as some-more business filled 90-day orders.Although Walgreens second entertain formula longed for the accord view, Raymond James researcher John Ransom says that "investors had approaching this energetic to start given new sales trends (perhaps, to a incomparable extent), and as a result, we would not expect a element pullback in shares." However, Ransom records that the batch has achieved well in new weeks "recapturing majority of the lost gains given stating diseased Feb same-store sales."In Feb Wallgreen concluded to compensate $618 million in money and pretence $457 million in debt to squeeze the 257 New York-area stores of Duane Reade, but the understanding wouldnt reap one more gain until 2012 due to accounting manners that need a apportionment to be expensed rather than capitalized. (See "I"ll Take Manhattan."),,2010/03/23/walgreen-cvs-caremark-markets-equities-pharmacies-rite-aid.htmlRivals in the industry were rising Tuesday. CVS Caremark gained 55 cents, or 1.6%, to $35.74; Rite Aid ( RAD - news - people ) 3 dual cents, or 0.8%, to $3.75.
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