Walgreens profits squeezed as Covid vaccine wanes, health-care investment rises

The Walgreens store at State and Randolph Streets in Chicago.
Nancy Stone | Chicago Tribune | Tribune News Service via Getty Images

Walgreens Boots Alliance on Thursday reported quarterly sales and earnings that came in above expectations as it grew online sales and continued to administer Covid-19 vaccines.

The drugstore chain stood by its outlook for the full year, saying it expects adjusted earnings per share to grow by the low single-digits.

Shares of the company were down by about 2% in premarket trading.

Here’s what the company reported compared with what analysts were expecting for the three-month period ended May 31, based on Refinitiv data:

  • Earnings per share: 96 cents adjusted vs. 92 cents expected
  • Revenue: $32.6 billion vs. $32.06 billion expected

In the quarter, net income fell to $289 million, or 33 cents per share, from $1.2 billion, or $1.38 per share, a year earlier.

Excluding items, the company earned 96 cents per share, exceeding the 92 cents expected by analysts surveyed by Refinitiv.

Sales decreased to $32.6 billion from $34.03 billion a year earlier. That was higher than the $32.06 billion that analysts expected.

Earlier this week, Walgreens said it would halt plans to sell its United Kingdom-based Boots business, citing instability in the markets. The company said in January that it was looking into strategic options for that division, including a possible sale.

As of Wednesday’s close, Walgreens shares were down about 22% so far this year. Shares close Wednesday at $40.87, bringing the company’s market value to $35.30 billion.

This story is developing. Please check back for updates.

Finance

Articles You May Like

Forexlive Americas FX news wrap 12 Jul: PPI not as friendly as the CPI
Samsung shares hit over 3-year high after better-than-expected guidance on strong AI demand
US Dollar prolongs losses despite strong PPI data
NZDUSD reaches target resistance and backs off to 200 bar MA on 4-hour chart
The 2-10 year yield rises to -27.3 basis points. A close here will be highest since Jan 29

Leave a Reply

Your email address will not be published. Required fields are marked *