6:02 AM
Walgreen results beat expectations
Addison Ray
CHICAGO | Tue Sep 28, 2010 8:14am EDT
CHICAGO (Reuters) - Walgreen Co (WAG.N) reported higher-than-expected quarterly earnings on Tuesday, helped by strong prescription drug sales, sending its shares up nearly 5 percent in early trading.
The biggest U.S. drug store chain said net earnings for the fourth quarter ended August 31 were $470 million, or 49 cents per share, compared to $436 million, or 44 cents per share, for the same quarter in 2009.
Analysts on average expected earnings of 44 cents per share, according to Thomson Reuters I/B/E/S.
Walgreen, which operates about 7,500 stores, said revenue increased 7.4 percent to $16.87 billion. Analysts were expecting $16.84 billion.
Sales at stores open at least a year rose 1.5 percent, helped by sales of prescription drugs. Prescription sales at comparable stores increased 1.6 percent.
Walgreen shares rose to $31.85 in premarket trading, up from a close of $30.35 on Monday.
(Reporting by Emily Stephenson; editing by John Wallace)
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