Walgreen Shares Down Over 4%, Earnings Disappoints: WAG, ESRX
Walgreen (NYSE:WAG) FQ4 results are out and they didn’t impress. Net income for the drug store rose 68.5% to $792 million (87 cents per share) vs. $470 million (48 cents per share) in the same quarter a year earlier. Investors might be disappointed there has been no progress in a renewal of the contract between Walgreen’s and Express Scripts (NASDAQ:ESRX). Walgreen said they did not think they would be a part of the Express Scripts’ pharmacy provider network next year.
According to Business Wire, “Walgreens (NYSE:WAG) said that contract renewal negotiations with pharmacy benefit manager Express Scripts, Inc., had been unsuccessful, and as a result the company was planning not to be part of the Express Scripts pharmacy provider network as of Jan. 1, 2012. Since then, there has been no substantive progress in the contract renewal negotiations with Express Scripts. As part of the company’s strategy and plan to move forward without Express Scripts after Dec. 31, 2011, Walgreens is working with a number of partners to explore all options so that their employees and members can continue to have access to Walgreens convenient, cost-effective pharmacy, health and wellness services.”
Walgreen’s (NYSE:WAG) stock is down 4.25% to $34.51 on the news. Shares are down 11.37% year to date. The stock has traded in a 52-week range between $30.17 and $47.11.