The State and Randolph Streets Walgreens store in Chicago.
Nancy Stone Chicago Tribune | Tribune News Service via Getty Images
The Walgreens Boots Alliance reported quarterly sales and earnings on Thursday that exceeded expectations as its retail sales recovered and online purchases rose.
But shares fell about 2 percent in pre-market trading as demand for Covid-19 vaccines faded and the company repeated instead of raising its forecast for the year. He said he expects adjusted earnings per share to rise with low single digits.
Here’s what the company said compared to what analysts had expected for the three-month period ended May 31, based on Refinitiv data:
- Earnings per share: 96 cents adjusted for expected 92 cents
- Revenue: $ 32.6 billion versus the expected $ 32.06 billion
During the quarter, net earnings fell to $ 289 million, or 33 cents a share, from $ 1.2 billion, or $ 1.38 a share, a year earlier. The sharp drop reflects a $ 683 million fee related to the settlement of opioids with the state of Florida, a drop in pharmacy sales in the United States since a year ago passed a large volume of vaccinations against Covid-19 and investment in expanding healthcare business.
Excluding the articles, the company earned 96 cents per share, exceeding 92 cents expected by analysts polled by Refinitiv.
Sales fell to $ 32.6 billion from $ 34.03 billion a year earlier. Analysts expected $ 32.06 billion.
Walgreens boosted sales during the pandemic as customers turned to its Covid-19 vaccine and test stores. This demand is declining, pushing the company to stimulate growth in other ways.
The company administered 4.7 million vaccines in the third quarter, a sharp decline of 15.6 million vaccines in the first quarter and 11.8 million in the second quarter.
Healthcare became a major impetus as Walgreens struck a deal with VillageMD to open hundreds of doctor’s offices in its stores.
Walgreens has also expanded online options, such as pick-up and delivery from the board, to try to stop customers from buying toothpaste, soap and other items from online players like Amazon. The company said its digital options gained popularity in the quarter, up 25% from a year earlier, in addition to growth of 95% in the previous period. The growth was fueled by 2.8 million receivables on the same day, the company said.
In the United States and the United Kingdom, retail sales rose as consumers pulled out again and again. Sales at the same store in the United States increased by 2.4%, excluding tobacco, and by 24% for retail trade with Boots UK.
Earlier this week, Walgreens said it would suspend plans to sell the UK-based Boots business, citing market volatility. The company said in January that it was exploring strategic options for the unit, including a possible sale.
As of Wednesday’s close, Walgreens shares have fallen about 22 percent so far this year. Shares closed at $ 40.87 on Wednesday, bringing the company’s market value to $ 35.30 billion.
This story is evolving. Please check again for updates.
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