NEW YORK (TheStreet) -- You can now relax if you were concerned Walgreen (WAG) , the largest drugstore chain in the U.S., is losing market share to Rite Aid (RAD) , which reported better-than-expected third-quarter earnings results Monday.
Walgreen reported fiscal first-quarter earnings Tuesday of $809 million, or 85 cents per share, compared with $695 million, or 72 cents per share, a year earlier. On an adjusted basis, earnings were 81 cents per share, topping analysts' estimates of 74 cents, according to Thomson Reuters. Revenue also beat analysts' estimates by $50 million, reaching $19.55 billion.
After an already dominant performance in 2014, Walgreen has started its new fiscal year, which ends August 2015, on a strong note. The company's shares are up 33% for the year to date compared to gains of 8.8% gain in the Dow Jones Industrial Average and the 12.7% gain in the S&P 500.
WAG data by YCharts
Walgreen CEO Greg Wasson, who plans to leave the company at the end of the month, called the results a "solid performance" for both pharmacy and retail products. On his last conference call with analysts, Wasson said, "The best is yet to come."
This is because Walgreen is in the process of buying Swiss health and beauty company Alliance Boots. Walgreen already hold a 45% equity stake in the joint venture. Walgreen will own Alliance Boots in full when the deal is expected to close Dec. 31.