Walgreens Boots Alliance Inc. (NASDAQ: WBA) reported third-quarter fiscal 2016 results before markets opened Wednesday. The drugstore chain reported adjusted diluted earnings per share (EPS) of $1.18 on net sales of $29.5 billion. In the same period a year ago, Walgreen reported EPS of $1.02 on revenue of $28.8 billion. Third-quarter results also compare to the consensus estimates for EPS of $1.14 and $29.71 billion in sales.

On a GAAP basis, the company posted net income of $1.1 billion in the first quarter ($1.01 per share). Net sales and earnings in the quarter “reflect fluctuations in the quarterly fair value adjustments of the company’s AmerisourceBergen Corporation warrants.”

Walgreens raised the low end of its fiscal year adjusted EPS guidance by 10 cents to a new range of $4.45 to $4.55. Guidance assumes no material help from the proposed acquisition of Rite Aid.

Consensus estimates for 2016 adjusted earnings called for EPS of $4.49. Analysts have also tabbed full-year revenues at $118.46 billion. For the company’s fourth quarter, consensus estimates call for EPS of $1.01 on revenues of $29.46 billion.

Executive vice-chairman and CEO Stefano Pessina said:

I’m pleased to report that since the quarter end we achieved our goal set four years ago of at least $1 billion in combined net synergies in fiscal year 2016 related to the strategic combination with Alliance Boots. This provides us with a strong platform to further enhance operating performance, to meet the challenges of the current volatility in many of our markets and to better position our company for long-term success.

U.S. pharmacy sales totaled $21.2 billion in the quarter, up 3.7% year over year. Same-store sales rose 3.9%. Pharmacy sales accounted for 67.4% of total sales, up 5.8%, and same-store pharmacy sales rose 6%.

The company said its proposed acquisition of Rite Aid “is progressing as planned,” and Walgreens expects the transaction to close in the last half of this year.

Shares traded down about 0.6% in premarket trading Wednesday, at $83.01, in a 52-week range of $71.50 to $97.30. Thomson Reuters had a consensus analyst price target of $94.23 before the results were announced.

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