Walgreens Boots Alliance's (WBA) fiscal second-quarter results exceeded market expectations, while the drugstore chain withdrew its full-year guidance due to its proposed acquisition by Sycamore Partners.

The company on Tuesday reported adjusted earnings of $0.63 a share for the quarter ended February, down from $1.20 the year before, but ahead of the FactSet-polled consensus of $0.53. Lower retail sales in the US and prior-year sale-leaseback gains dragged adjusted EPS down, partially offset by cost savings within the US retail pharmacy segment and growth in the US healthcare unit, according to Walgreens.

Sales advanced 4.1% to $38.59 billion in the quarter, topping the Street's view for nearly $38 billion. Walgreens' shares were up 1.5% in Tuesday trade.

Last month, the company agreed to be acquired and taken private by an affiliate of private equity firm Sycamore Partners in a deal worth up to $23.7 billion. The transaction, which requires approval from regulators and shareholders, is expected to complete in the fourth quarter.

As a result of the pending deal, Walgreens withdrew its previously issued fiscal 2025 outlook and canceled its conference call with analysts to discuss financials.

"Second-quarter results reflect disciplined cost management and improvement in US Healthcare, which were partially offset by weaker front-end results in US retail pharmacy, while significant legal settlements resulted in continued negative free cash flow," Chief Executive Tim Wentworth said in the earnings release.

The company said its GAAP results included $4.2 billion of an impairment charge related to goodwill, intangible and other "long-lived" assets primarily in the US retail pharmacy division and clinic operator VillageMD. Walgreens reported $1 billion in after-tax gains related to monetization of certain assets.

Revenue in the US retail pharmacy segment improved 5.3% to $30.38 billion, while comparable sales climbed 8.2%. Same-store pharmacy sales climbed 12%, benefiting from higher branded drug inflation and prescription volume, Walgreens said. Retail revenue and the category's comparable sales logged declines of 5.5% and 2.8% each, reflecting lower discretionary sales.

International sales edged up 0.6% to $6.06 billion despite a currency headwind of 3.5%. The US healthcare division logged revenue of $2.15 billion, down from $2.18 billion in the prior-year quarter, according to the company.

"We remain in the early stages of our turnaround plan, and continue to expect that meaningful value creation will take time, enhanced focus and balancing future cash needs with necessary investments to navigate a changing pharmacy and retail landscape," according to Wentworth.