Pharmacy chain operator Walgreen Company (WAG) on Tuesday posted in-line fiscal third quarter earnings, announced a partnership with a European pharmacy chain, and increased its quarterly dividend payout by 22%.
The Deerfield, IL-based company reported fiscal third quarter net income of $537 million, or 62 cents per share, compared with $603 million, or 65 cents per share, in the year-ago period.
Revenue fell 3% from last year to $17.75 billion.
On average, Wall Street analysts expected a matching profit of 62 cents per share, on higher revenue of $17.87 billion.
In a separate announcement, WAG said it would spend $6.7 billion in cash and stock to buy a 45% equity ownership stake in European pharmacy chain Alliance Boots. In pursuant to the deal, Walgreen retains the option to purchase the remaining 55% stake in Alliance Boots in about three years.
The company’s board of directors also approved a 22% increase in its quarterly dividend payout. The new dividend of 27.5 cents per share (up from 22.5 cents) will be paid on Sept. 12 to shareholders of record as of Aug. 17. The ex-dividend date is Aug. 15.
Walgreen shares fell 66 cents, or -2.1%, in premarket trading Tuesday.
The Bottom Line
Shares of Walgreen Company (WAG) will now have a 3.44% dividend yield, based on the higher dividend payout and last night’s closing stock price of $31.96. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.
Walgreen Company (WAG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here