Walgreen's Profits Top Estimates

Drugstore chain Walgreen (WAG Quote - Cramer on WAG - Stock Picks) said it had record sales for the fiscal second quarter, and profits for the three-month period edged past analysts' estimates, sending its shares higher Monday.

The company earned $686 million, or 69 cents a share, for the quarter ended Feb. 29, up from $652 million and 65 cents a share in the year-ago period. Analysts were looking for 67 cents.

Sales in quarter increased 10.5% to $15.4 billion. Comparable-store sales were up 4.7%. Prescription sales, which accounted for 62.8% of sales in the quarter, climbed 11.1%.

"Our employees across the country did a great job of controlling costs to counter tough comparisons faced with the year-ago quarter," said Walgreen Chairman and CEO Jeffrey A. Rein, in a press release. "While sales softened in this challenging economy, we continue to execute and deliver."

Shares of Walgreen were gaining 4% to $38.25.