Earnings season is well under way, with three major companies posting their results on Thursday: Walgreens (WBA), American Airlines (AAL) and Union Pacific Corp. (UNP). Here are the key takeaways from each report:
1. Walgreens Has Strong Quarter
Walgreens Boots Alliance posted a strong quarter, with earnings topping the $1 billion mark in the fourth quarter. But the company also announced that it would be delaying the closing its deal with Rite Aid Corp. (RAD).
The company expects to close the $9.4 billion deal in early 2017. Walgreens initially planned to close the transaction by the end of 2016.
The drugstore chain posted $1.03 billion in earnings, up from $23 million during the same quarter last year. Adjusted earnings per share came in at $1.07. Analysts were expecting $0.99 earnings per share.
Revenue was flat at $28.64 billion, just missing expectations of $29.17 billion.
2. American Airlines Posts 56% Decline in Earnings
American Airlines posted its third-quarter results on Thursday, which showed a 56% decline in net income. The figure met analysts’ expectations.
The airline brought in $737 million in net income for the last quarter compared to $1.7 billion during the same period last year. The results of $1.40 per diluted share met Wall Street’s expectations.
A $452 million tax bill was mostly to blame for the decline in earnings. Pre-tax income came in at $1.2 billion, 30% lower than the $1.7 billion posted last year.
Revenue came in at $10.6 billion for the quarter, a 1.1% drop from the same period last year.
3. Union Pacific Partnership Misses Estimates
Union Pacific Corp.’s third-quarter profit failed to meet expectations, with weak demand and failure to raise prices hurting the company’s bottom line.
Adjusted earnings per share came in at $1.36, which failed to meet expectations of $1.40. Sales were down 7% to $5.17 billion, which was in line with projections.
