Walgreens Boots Alliance Inc. (NASDAQ:WBA) trumped Wall Street earnings expectation

On average, equities research analysts predict that Walgreens Boots Alliance Inc will post $4.43 EPS for the current fiscal year.

The Retail Pharmacy USA division, whose principal retail pharmacy brands are Walgreens and Duane Reade, had first quarter total sales of $20.4 billion, an increase of 4.2% over the year-ago quarter. Zacks Investment Research upgraded shares of Walgreens Boots Alliance from a “sell” rating to a “hold” rating in a research note on Tuesday, December 29th.

Revenue jumped 48% to $29.03 billion, fueled by its acquisition of the part of European drugstore chain Alliance Boots GmbH it didn’t own already. Walgreens Boots Alliance continues to expect to reach at least $1 billion in combined net synergies in fiscal 2016 relating to the strategic combination with Alliance Boots. The transaction is expected to close in the second half of calendar 2016.

Good performances in retail healthcare and beauty at Boots’ UK stores helped Walgreens Boots Alliance report an increase in sales in its latest financial results.

Walgreens Boots exited the reported quarter with cash and cash equivalents of $2.6 billion, down from $3 billion in the fourth quarter of fiscal 2015. In particular, Walgreens would like to return to the pharmacy benefits management business, which involves running prescription drug coverage for big customers like employers and insurers.

“The year has started with a comparatively strong first quarter, as we expected”, said CEO Stefano Pessina in a statement. Walgreens is the largest drug retail chain in the United States with 8,300 stores in 50 states.

Walgreens shares have fallen 6.5 percent since the beginning of the year.

Revenue from established stores is considered a key indicator of a retailer’s health, because it excludes the impact from recently opened or closed stores. Walgreens said those sales were affected by a reduction in unprofitable promotions and a shift away from seasonal items like holiday decorations toward “higher quality, giftable items”. Shares have skidded 3.3% to $77 in pre-market trading as of 05:37 AM EST, after tanking 1.53% to $79.63 yesterday. The stock has climbed almost 7 percent in the last 12 months. The stock has a market capitalization of $86.70 billion and a PE ratio of 19.91.

Bath Savings Trust Company decreased its position in shares of Walgreens Boots Alliance Inc (NASDAQ:WBA) by 0.4% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. In a note to investors, the firm issued a Buy rating and assigned the target price on the stock of $94.50.