Walgreen Co. (WAG: chart) announced Monday that its quarterly profits increased nearly 14% from last year, boosted by solid pharmacy sales. However, the results missed Wall Street’s estimates, as rising costs hurt profits. The Deerfield, Illinois-based U.S. largest drug store chain posted net income of $490.9 million, or 48 cents a share, for the second quarter of fiscal 2005, compared with net income of $431.6 million, or 42 cents a share, a year ago. Excluding items, Walgreen earned $487.9 million, or 47 cents a share, for the quarter ended February 28, falling a penny a share shy of the mean analysts’ forecast. The company said the cost of converting its photo-processing labs to digital photo labs dampened its earnings. Second-quarter sales rose to $10.99 billion, a 12.3% jump year-over-year. Analysts had expected sales of $11.03 billion, on average. Same-store sales climbed 7.7% compared with the year-earlier period, when sales were helped by an extra day due to Leap Year. Pharmacy sales advanced 13.8%, and accounted for 61.2% of total revenue. For the first half of 2005, the company recorded income of $819.5 million, or 80 cents a share, up 20% from $683.1 million, or 66 cents a share, for the same period in fiscal 2004. Sales rose 12.8% to $20.9 billion.

Walgreen shares dipped 2.42% to close Monday at $45.11. The stock recovered 19 cents to $45.30 in after-market trade.

The Finish Line, Inc. (FINL: chart) announced on March 23 that its quarterly income jumped 34% from last year, boosted by solid sales growth. The athletic specialty retailer rolled out a net profit of $28.2 million, or 57 cents per share, for the fourth quarter of fiscal 2005, in contrast to a net profit of $21.1 million, or 43 cents per share, a year ago. The earnings were a penny a share above the average analysts’ forecast. For the quarter ended February 26, the Indianapolis-based company recorded sales of $361.4 million, which is an 18% increase from prior-year sales of $305.3 million. Comparable-store sales rose 8% from the 2004 equivalent. Finish Line said sales were helped partly by strong demand for high-priced shoes. Analysts had expected fourth-quarter sales of $360 million, on average. For all of the year, the company earned $61.3 million, or $1.24 per share, up from $47.3 million, or 98 cents per share, in 2004. Annual sales climbed 18% to $1.17 billion.

Company shares dipped 2.2%, or 47 cents, to $20.60 in extended-hours trading.

Family Dollar Stores, Inc. (FDO: chart) reported before market open on March 22 that its quarterly profits weakened slightly from a year earlier, hurt by lower profit margins. The discount store chain announced net earnings of $80.1 million for its fiscal 2005 second quarter, down from net earnings of $80.4 million for the same period last year. Earnings per share rose to 48 cents, in the quarter ended February 26, from 46 cents for the 2004 comparable period, due to fewer shares outstanding. The earnings were in line with analysts’ estimates. The Charlotte, North Carolina-based company recorded sales of $1.59 billion for the second quarter of 2005, against prior-year sales of $1.40 billion. Comparables-store sales edged up 4.5% from a year ago. However, profit margin as a percentage of sales declined to 32.8% from 33.8%, due to higher sales of lower-priced goods. For the first six months of 2005, net income slipped 6.5% to $134.5 million, or 80 cents per share, from $143.9 million, or 83 cents per share, a year ago. Sales were $2.97 billion for the first half of 2005, which is a 12% growth from $2.65 billion, in 2004.

Company shares rose 1.77% to $30.97 in afternoon trading.

Morgan Stanley (MWD: chart) announced before the bell on March 17 that its quarterly profits increased 20% from a year ago, driven by strong results in its fixed income and investment management divisions. The New York-based investment bank turned in net income of $1.47 billion, or $1.35 a share, for the first quarter of fiscal 2005, up from net income of $1.23 billion, or $1.11 a share, for the 2004 comparable period. The earnings powered past the average analysts’ estimate of $1.16 a share. Morgan Stanley said its latest results included an after-tax benefit of $49 million from the cumulative effect of an accounting change. For the quarter ended February 28, the company recorded net revenue of $6.85 billion, which is a 10% growth compared to prior-year net revenue of $6.24 billion. Analysts were looking for revenue of $6.44 billion. In the company’s institutional securities division, fixed income achieved record quarterly sales and trading revenues of $2 billion, a 21% jump year-over-year. However, pre-tax income in the division slipped 3% to $1.15 billion, hurt by charges. Pre-tax income in the Individual Investor Group more than doubled from last year to $353 million.

Albertsons, Inc. (ABS: chart) reported on March 15 higher quarterly profits, aided by acquisitions. However, the earnings missed analysts’ estimates. The Boise, Idaho-based U.S. second-largest supermarket chain rolled out net income of $194 million, or 52 cents per share, for its fiscal 2004 fourth quarter, compared with net income of $130 million, or 35 cents per share, last year. The grocer said its 2004 fourth-quarter results also benefited from an additional week of business. On a pro forma basis, the company earned $186 million, or 50 cents per share, up 44% from $129 million, or 35 cents per share, generated for the 2003 equivalent. The consensus analysts’ forecast was for a profit of 52 cents per share. For the quarter ended February 3, sales totaled $11.08 billion, which is a 29% jump from prior-year sales of $8.57 billion. The purchase of Shaw's and Bristol Farms chains boosted the results. Same-store sales climbed 5.3% year-over-year. Analysts expected total sales of $10.95 billion.

For fiscal year 2005, Albertsons projected earnings in the range of $1.33 to $1.43 per share.