Longs Drugs Raises Earnings Forecast
Longs Drug Stores Corp. posted higher second-quarter profit and raised its profit forecast for the year because of an adjustment in the company’s self-insurance reserves and lower costs.
The Walnut Creek-based drug-store chain raised its profit outlook for the full year to $1.39 to $1.49 a share. It previously had forecast earnings of $1.30 to $1.40 a share.
For the third quarter, Longs expects net income of 17 cents to 23 cents a share.
Profit in the second quarter ended July 28 rose to $16.8 million, or 44 cents a share, from $3.4 million, or 9 cents a share, a year earlier. The year-earlier period included net expenses of 18 cents a share for legal settlements.
Sales in the quarter rose 0.6% to $1.16 billion.
Shares of Longs rose 94 cents to $43.30.