Walgreen (NYSE:WAG) reported a 69% jump in earnings for its fiscal fourth quarter today.
Profits rose to $792 million, or $0.87 per share, from $470 million, or $0.49 per share, last year.
Adjusted earnings of $0.57 per share were ahead of analyst expectations.
Revenue rose 6.5%, to $18 billion, on 4.4% same-store sales growth.
Walgreen noted that it has not made substantive progress in contract renewal negotiations with pharmacy benefit manager Express Scripts (NASDAQ:ESRX). It had said in June that negotiations had been unsuccessful, and therefore Walgreen was planning not to be a part of the Express Scripts provider network as of January 2012. Walgreen said it is working with a number of partners to explore all its options.
And rival CVS Caremark (NYSE:CVS) is trading up 2.5% Tuesday, after AmerisourceBergen (NYSE:ABC) said it is going to acquire a CVS subsidiary.
Pharmaceutical service company AmerisourceBergen said it has agreed to acquire TheraCom, which provides a range of support to pharmaceuticals and biotechnology drug manufacturers, for $250 million.
The acquisition is expected to be accretive to earnings in fiscal 2013, Amerisource said, and is expected to close in the first quarter of its 2012 fiscal year, which ends December 31, 2011.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.