Walgreens and Rite Aid rise while ConAgra and Accenture dip after earnings

Walgreens and Rite Aid rise while ConAgra and Accenture dip after earnings


Walgreens Boots Alliance  was up +4% as the US pharmaceutical chain that is integrated for one year into the Dow Jones Historical Index, announced for the third fiscal quarter of 2019 a net profit group share of $1.03 billion or $1.13 per share, compared to $1.34 billion and $1.35 per share a year earlier. The adjusted earnings per share for the three months through May was $1.47 against a consensus of $1.43. Quarterly revenues were up 1% to $34.6 billion, while the consensus was more than $34.5 billion. US sales in pharmacies improved by 4.3%. The group is finally maintaining its annual earnings guidance.

Rite Aid jumped 20% despite the publication of a heavier loss than expected. The adjusted group’s net loss from continuing operations in the first fiscal quarter was $7.5 million, or 14 cents per share, compared to an adjusted profit of $1 million a year earlier. The outlook is unenthusiastic, with the group expecting a net loss of $170-220 million and an adjusted EPS of -14 cents to +72 cents. Revenues for the year are expected between $21.5 and $21.9 billion.

ConAgra dipped 12% after the US food group missed the consensus of profits over the closed quarter, against a backdrop of weak demand. For the fourth quarter, closed at the end of May 2019, the group achieved a 33% growth with the acquisition of Pinnacle, but the organic evolution is slightly weak. Gross margin climbs 23% to $708 million. Net profit rose from 82% to $127 million, or 26 cents per share. Finally, the adjusted profit amounts to $175 million, 36 cents per share.

Accenture, the consulting giant, has slipped after it exceeded expectations in the closed quarter. For the third fiscal quarter, the group made a profit of $1.93 (+ 8%) compared to a consensus of $1.89. The firm’s revenues came in at $11.1 billion over the period, compared to $11 billion in consensus and $10.3 billion in the comparable period of the previous year. The group finally increases its 2019 annual forecasts, with EPS ranging from $7.28 to $7.35 against $7.3 consensus.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.