It’s More Than Earnings Holding Back Walgreens
Walgreens Boots Alliance slid on Thursday after the company reported disappointing fiscal third-quarter financial results and guidance.
Walgreens Boots Alliance Inc. (NASDAQ: WBA | WBA Price Prediction) slid on Thursday after the company reported its fiscal third-quarter financial results. The company said that it had $0.83 in earnings per share (EPS) and $34.6 billion in revenue, which fell short of consensus estimates that called for $1.17 in EPS and $34.35 billion in revenue. The same period of last year reportedly had EPS of $1.47 in EPS and revenue of $34.59 billion.
During the fiscal third quarter, sales increased 0.1%, or 1.2% on a constant currency basis, led by Retail Pharmacy USA comparable sales growth of 3.0%.
Retail Pharmacy USA segment sales increased 3.2% to $27.4 billion, including the impact of previously announced store closures. Sales in comparable stores increased 3.0% from the year-ago quarter.
Retail Pharmacy International had third-quarter sales of $1.9 billion, a decrease of 31.5% year over year, including an adverse currency impact of 5.3%. Sales decreased 26.2% on a constant currency basis, mainly due to a 27.7% decrease in Boots UK sales as foot traffic in stores was severely disrupted by COVID-19 restrictions.
[nativounit]
Pharmaceutical Wholesale had a third-quarter sales increase of 0.6% to $5.9 billion, including an adverse currency impact of 4.8%. On a constant currency basis, sales increased 5.3%, led by the United Kingdom and Germany.
Net cash from operating activities totaled $3.4 billion, an increase of $183 million from last year. Free cash flow increased 23.7% to $2.4 billion. The company ended the quarter with $768 million in cash and cash equivalents on the books, compared with $1.02 billion at the end of fiscal 2019.
Looking ahead, Walgreens expects to see full fiscal year EPS in the range of $4.65 to $4.75, including an estimated impact of COVID-19 of $1.03 to $1.14 per share. For the year, analysts are calling for $5.42 in EPS and $139.26 billion in revenue.
Walgreens stock traded down 9% on Thursday, at $38.41 in a 52-week range of $36.65 to $64.50. The consensus price target is $45.76.
[recirclink id=717696][wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
