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March 28, 2023

Walgreens Earnings Slip but Q2 Beats Analyst Estimates

Posted In: Retail Articles

In the second quarter, Walgreens Boots Alliance saw earnings slip, with the waning COVID-19 pandemic playing a role, but sales gain and both metrics beat Wall Street estimates.

Walgreens posted company net earnings of $703 million, or 81 cents per diluted share, versus $883 million, or $1.02 per diluted share, in the year-prior quarter. Adjusted for one-time events, net earnings were $1 billion, or $1.16 per diluted share, versus $1.38 billion, or $1.59 per diluted share, in the year-earlier period.

Adjusted diluted earnings per share beat a Yahoo Finance-published analyst consensus estimate of $1.10 with earnings also better than the expected $33.53 billion.

The company reported net sales of $34.86 billion versus $33.76 billion in the year-previous quarter. Operating income was $197 million versus $1.25 billion in the year-before period while adjusted operating income was $1.22 billion versus $1.66 billion, the company noted. 

U.S. Retail Pharmacy segment sales slipped 0.3% to  $27.6 billion, even as comparable sales increased 3.1% from the year-past quarter. Retail sales, including general merchandise, decreased 1.8%, the company stated, as comps slipped 1% in the period year over year. With results from tobacco sales excluded, comps declined 0.5% including a 500 basis point headwind from lower sales of OTC test kits, partly offset by core growth across categories.

In introducing the financial results, Walgreens CEO Rosalind Brewer said, “WBA exited a solid second quarter with acceleration in February, adding to our confidence in driving strong growth in the second half of the year. With the closing of VillageMD’s acquisition of Summit Health, WBA is now one of the largest players in primary care, with best-in-class assets across the care continuum. Both Walgreens and Boots are performing well by delivering compelling value to consumers, playing a critical role as community health destinations, and successfully navigating a challenging environment. We will continue to take bold actions to create sustainable long-term shareholder value.”

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