HomeBusinessWalgreens (WBA) Q3 2022 results

Walgreens (WBA) Q3 2022 results

The Walgreens store on State and Randolph streets in Chicago.

Pierre Nancy | Chicago Grandstand | Tribune News Service via Getty Images

Walgreens Boots Alliance reported quarterly sales and earnings that beat expectations on Thursday as retail sales rebounded and online shopping increased.

But shares fell about 2% in premarket trading as demand for Covid-19 vaccines faded and the company reiterated rather than raised its guidance for the year. He said he expects adjusted earnings per share to grow by low single digits.

Here’s what the company reported compared to what analysts expected for the three months 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

During the quarter, net income fell to $289 million, or 33 cents per share, of $1.2 billion, or $1.38 per share, a year earlier. The sharp drop reflects a $683 million charge related to its opioid settlement with the state of Florida, a drop in US pharmacy sales as it topped a high volume of Covid-19 vaccinations a year ago. year and investments in its expanding healthcare business.

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

Sales fell to $32.6 billion from $34.03 billion a year earlier. Analysts expected $32.06 billion.

Walgreens has increased sales during the pandemic as customers have turned to its stores for Covid-19 vaccines and testing. This demand is fading, prompting the company to drive growth in other ways.

The company administered 4.7 million vaccines in the third quarter, a sharp drop from 15.6 million vaccines in the first quarter and 11.8 million in the second quarter.

Health care became a major breakthrough, as Walgreens struck a deal with VillageMD to open hundreds of doctor’s offices in its stores.

Walgreens has also expanded online options, such as curbside pickup and delivery, to try to stop customers buying toothpaste, soap and other items from online players like Amazon. The company said its digital options grew in popularity in the quarter, growing 25% from a year ago, in addition to growing 95% over the time of year. former. The growth was fueled by 2.8 million same-day pickup orders, the company said.

In the United States and the United Kingdom, retail sales recovered as consumers moved again. Same-store sales in the United States increased by 2.4%, excluding tobacco, and by 24% for Boots UK retail.

Earlier this week, Walgreens announced it would end plans to sell its UK-based Boots business, citing unstable markets. The company said in January that it was reviewing strategic options for this 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.

Read the company’s earnings release here.

This story is developing. Please check for updates.

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