Dallas, Texas 12/30/2013 (FIANACIALSTRENDS) – The S&P 500 index tracked drug store operator Walgreen Company (NYSE:WAG) released its results for quarter operations which concluded on November 30 on December 27. Post the announcement; the stock market almost ignored the results as the barely perceivable 0.42 percent decrease in value during trading on December 27 indicates.
Walgreen Company (NYSE:WAG) through its more than 8600 stores spread across the 50 cities of U>s was able to generate net income of $8.6 billion which translates into a two percent increase in its revenue in comparison to same quarter of FY12. Its biggest revenue stream was from drugstores which yielded $8.2 billion in revenue this quarter, as against a $8.05 billion revenue this stream generated in FY12 same quarter.
Commenting about its long term outlook, Walgreen Company (NYSE:WAG) has indicated that thanks to a aging population its revenue forecast from prescription is expected to be strong since the aging population will have a heavy dependency on generic drugs. It also foresees its own coffers filling up as the different aspects of the Patient Protection and Affordable Care Act start to take effect and more and more populace of U.S gets covered under medical insurance.
In the just concluded quarter, the firm indicated that the lower rate of new drugs introduction resulted in the firm being able to manage the ill impacts of new rate adjustments in 2013. Commenting about the firms strategy around growing inorganically via acquisitions, the company has explained, “ In the first quarter of fiscal 2014, we acquired certain assets of Kerr Drug and its affiliates, which includes 76 retail drugstore locations, as well as a specialty pharmacy business and a distribution center, all based in North Carolina. This investment provides joint ownership in a specialty pharmacy for cystic fibrosis patients and their families in addition to providing new product launch support and call center services for drug manufacturers.”