Walgreens shares fall as pandemic demand slows and health-care investments ramp up

Earnings

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A person enters a Walgreens store in San Francisco, California, U.S., on Tuesday, April 13, 2021.
David Paul Morris | Bloomberg | Getty Images

Walgreens Boots Alliance on Thursday topped analysts’ expectations for fiscal second-quarter earnings, after the omicron variant intensified demand for Covid booster shots and tests during the winter months.

The drugstore chain reiterated its outlook for the year. It has said that adjusted earnings per share will grow in the low single digits.

Shares rose about 1% in premarket trading.

Here’s what Walgreens reported compared with what analysts were expecting for the second quarter ended Feb. 28, based on Refinitiv data:

  • Earnings per share: $1.59 adjusted vs. $1.40 expected
  • Revenue: $33.76 billion vs. $33.4 billion expected

In the quarter, net income fell to $883 million, or $1.02 per share, from $1.03 billion, or $1.19 per share, in the year-ago period.

Excluding items, the company earned $1.59 per share, exceeding the $1.40 expected by analysts surveyed by Refinitiv.

Sales fell to $33.76 billion from $32.78 billion a year earlier, but surpassed the $33.4 billion that analysts expected.

As of Wednesday’s close, Walgreens shares are down 9% so far this year. Shares closed Wednesday at $47.46, bringing the company’s market value to $40.97 billion.

This story is developing. Please check back for updates.

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