Walgreens Boots Alliance Inc. (WBA - Get Report) , the newest Dow component, posted stronger-than-expected first quarter earnings but maintained its fiscal year earnings guidance and said cost savings and restructuring charges would hit its bottom line.
Walgreens Boots said adjusted earnings for the three months ending in November, the company's fiscal first quarter, came in at $1.46 per share, just ahead of the Street consensus of $1.43 and up 14% from the same period last year. Group revenues, Walgreens said, rose just under 10% to $33.8 billion, again topping analysts' forecasts. The group also said it sees fiscal year earnings growth of between 7% and 12% and outlined a three-year plan of cost cuts that would save $1 billion.
"We are pleased to have delivered double digit percentage growth in earnings per share in the first quarter, including solid results in the U.S.," said CEO Stefano Pessina. "We continue to focus on and invest in transforming our business."
"We are reaffirming our fiscal 2019 guidance and announcing the launch of a new transformational cost management program, which is targeting annual cost savings of more than $1 billion by the end of the third year, to better position ourselves to meet our long term targets," he added.
Walgreens Boots shares were marked 3.6% lower in at $70.60 each at the start of trading Thursday, as move that erases all of its three-month gain and value the Deerfield, Ill.-based retailer at around $67 billion.