Shares of Walgreen Shake Off Quarterly Profit Miss
NEW YORK (TheStreet) -- Shares of Walgreen climbed on Wednesday, despite the drugstore chain's second-quarter results that missed expectations.
Shares of Walgreen
Walgreen reported profit excluding items of 91 cents a share, missing analyst estimates by 2 cents, according to Thomson Reuters. The drugstore chain said profit was hurt by price cuts it made in order to compete with rivals during the holiday season.
Walgreen said a slowdown of generic drug introductions and a mild flu season also weighed on the company's results. However, CEO Greg Wasson said pressure from fewer new generic drugs would lighten in the second half of the fiscal year.
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The company also announced a more optimistic estimate regarding its partnership with Alliance Boots Holding. Walgreen now forecasts the partnership could generate synergies between $375 million and $425 million -- that's a $25 million increase from its prior estimate.
The company also said it plans to shut down 76 unprofitable stores by August as part of a plan to save $40 to $50 million per year beginning in 2015.
At last check, shares of Walgreen were than 3% to $66.42.
In New York, I'm Brittany Umar for TheStreet.
-- Written by Brittany Umar in New York.