Walgreens says pharmacy sales remained strong in the fiscal first quarter
- Walgreens says pharmacy sales remained strong in the fiscal first quarter.
- The U.S. company reports better than expected earnings and revenue in Q1.
- Walgreens Boots Alliance warns of a hit to financial performance in Q2.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) said on Thursday that its earnings and revenue came in better than expected in the fiscal first quarter. The company attributed its hawkish quarterly performance to robust pharmacy sales in recent months.
Walgreens Boots Alliance was reported about 2.5% up in premarket trading on Thursday and gained another 5% on market open. At £33.51 per share, the stock has now recovered significantly compared to the low of £24.75 per share in the last week of October. The price action should come in handy if you are interested in investing in the stock market.
Walgreens’ Q1 financial results versus analysts’ estimates
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According to Refinitiv, experts had forecast the company to print £25.81 billion of revenue in the first quarter. Their estimate for per-share earnings was capped at 76 pence. In its report on Thursday, Walgreens topped both estimates posting a higher £26.81 billion of revenue and 90 pence of earnings per share.
The American holding company reported £227.41 million of net loss in the recent quarter that translates to 26.58 pence per share. In comparison, it had registered £623.90 million of net income or 70.14 pence per share in the same quarter last year. Walgreens had noted £25.35 billion of sales in Q1 of the previous year.
The Deerfield-based company said that its U.S. comparable pharmacy sales in the first quarter came in 5% higher on a year over year basis. Growth in the U.K., on the other hand, stood at a narrower 2.5%. On Wednesday, Walgreens said that it will sell its distribution unit to AmerisourceBergen Corp. for £4.78 billion.
Walgreens warns of a hit to financial performance in Q2
According to Walgreens, its per-share earnings on an adjusted basis are likely to grow by under 5% this year. The company, however, warned that performance in Q2 could take a hit due to newly imposed national lockdown in the United Kingdom.
In related news, CEO Stefano Pessina of Walgreens Boots Alliance is scheduled to exit the role after a tenure that spanned over five years. But the U.S. company has not yet named a successor.
Walgreens Boots Alliance performed largely downbeat in the stock market last year with an annual decline of more than 30%. At the time of writing, the Nasdaq listed company is valued at £29 billion and has a price to earnings ratio of 87.75.