Walgreens profits squeezed as Covid vaccines wane, company invests in health-care business

Earnings

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.

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