Walgreens Boots Alliance beats analysts’ estimates for earnings and revenue in the second quarter

on Apr 2, 2020
  • Walgreens posts £28.83 billion in revenue and £1.22 per share earnings in Q2.
  • The global pharmacy chain partnered with Postmates for contactless home deliveries.
  • Walgreens Boots Alliance is currently over 25% down year to date in the stock market.

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Walgreens Boots Alliance (NASDAQ:WBA) released its quarterly performance results on Thursday. Topping analysts’ estimates for earnings, the company was seen trading higher in the stock market.

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In early trading, Walgreens was reported 3% higher on Thursday. At £35 per share, the company is, however, still trading more than 25% down year to date. The global pharmacy chain is currently valued at £30.68 billion with a price to earnings ratio of 10.58.

Walgreens Financial Results Versus Analysts’ Estimates

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According to Refinitiv, experts had anticipated the company to post £28.39 billion in revenue in the second quarter. In terms of earnings per share, their estimate was capped at £1.18. In its financial results on Thursday, Walgreens claimed to have generated a higher £28.83 billion in revenue in the recent quarter as it earned £1.22 per share in Q2.

Walgreens Q2 earnings report covered data before the Coronavirus pandemic took the U.S under its grip and fueled significant shifts in shopping patterns. As the U.S took over Italy and China and posted the maximum number of infected people in March, however, the company saw a significant surge in customers seeking to stock up on essential items including OTC (over the counter) drugs, prescriptions, disposable gloves, and cleaning supplies.

Before COVID-19, Walgreens said its performance was in line with the 2020 forecast of approximately flat growth. The effect of the pandemic, the company added, is hard to predict at the moment and further clarity can be expected in its next financial report.

In the quarter that ended on 29th February, Walgreens posted a net income of £761.41 million as compared to £930 million that was recorded in the same quarter last year. Walgreen’s revenue last year was capped at £27.79 billion versus £28.83 billion in the recent quarter.

Walgreens Partnered With Postmates For Contactless Home Deliveries

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Walgreens introduced a new, safer way of shopping for its customers during social distancing last week. The company said that it will make over 60 essential items available to be purchased via drive-throughs at its widespread network of 7,300 countrywide outlets in the U.S. Such items will include cleaning supplies, and medications for cough and cold.

The global pharmacy chain has recently partnered with Postmates for contactless home deliveries as well.

Walgreens’ staunch competitor, CVS Health, also declared recently that owing to the sharp increase in demand, it plans on expanding its workforce by 50,000 new hires as home delivery drivers, store associates, customer service personnel, and distribution center workers.

Health & pharma Stock Market