David Paul Morris | Bloomberg | Getty Images The Walgreens Boots Alliance on Thursday announced second-quarter financial gains that exceeded analysts’ expectations, as the Covid-19 omicron variant boosted demand for boosts and tests and increased leg movement during the winter months. The pharmacy chain reiterated its outlook for the year. He has said that adjusted earnings per share will rise to low single-digit levels. Shares fell about 1% in preliminary trading. See what Walgreens said compared to what analysts expected for the second quarter ended February 28, based on Refinitiv data:
Earnings per share: $ 1.59 adjusted against $ 1.40 expected Revenue: $ 33.76 billion compared to $ 33.4 billion expected
Net income for the quarter fell to $ 883 million, or $ 1.02 a share, from $ 1.03 billion, or $ 1.19 a share, in the previous quarter. Excluding the data, the company earned $ 1.59 per share, exceeding the $ 1.40 expected by analysts surveyed by Refinitiv. Sales rose to $ 33.76 billion from $ 32.78 billion a year earlier, exceeding analysts’ expectations of $ 33.4 billion. Walgreens said retail sales at the same stores in the U.S. rose 14.7 percent in the quarter from a year earlier, the biggest gain in more than 20 years. The company said it made profits in all categories – especially health and wellness items, including the Covid home test, over-the-counter medicines for coughs, colds and flu and beauty. In the UK-based Boots chain, retail sales in the same stores increased by 22% year-on-year, with earnings per share in all major categories. Walgreens is taking steps to become a healthier company. Led by CEO Roz Brewer, a former Starbucks CEO, the retailer acquired a majority stake in VillageMD, a primary care company that plans to open hundreds of clinics in Walgreens stores. Walgreens turns parts of some stores into a health corner where customers can go for medical advice with a pharmacist or nurse. The company is opening automated facilities where robots complete prescriptions, freeing up pharmacists time to provide more medical care. The pharmacy chain said it had given 11.8 million vaccines against Covid in the second quarter, bringing its total to more than 62.8 million vaccines to date. Walgreens will also benefit from the Food and Drug Administration authorization this week for a fourth Covid for people 50 years of age or older or immunocompromised. Walgreens said it was still considering the future of the UK-based Boots pharmacy chain. Earlier this year, Brewer confirmed that Walgreens is exploring strategic boots options, including a possible sale, as the company focuses on US healthcare activities. Walgreens shares have fallen 9% since closing Wednesday this year. Shares closed at $ 47.46 on Wednesday, raising the company’s market capitalization to $ 40.97 billion. Read the company press release here. This story is evolving. Check again for updates.
