Walgreens Boots Alliance reports lower than expected sales in Q2
- Walgreens Boots Alliance reports lower than expected sales in Q2.
- The American holding company's net income comes in at £750 million.
- Walgreens shares were 1.5% up in premarket trading on Wednesday.
Walgreens Boots Alliance Inc. (NASDAQ: WBA) said on Wednesday that its sales came in weaker than expected in the fiscal second quarter. The company, however, topped Wall Street estimates for per-share earnings in Q2.
Walgreens shares that you can learn to buy online here were reported about 1.5% up in premarket trading on Wednesday. The stock is now trading at a per-share price of £39.43. In comparison, it had started the year 2021 at a lower £30.08 per share.
Walgreens’s Q2 financial results versus analysts’ estimates
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Walgreens said that its net income in the second quarter printed at £750 million that translates to 86 pence per share. In the same quarter last year, its net income was capped at a lower £687.33 million, or 78 pence per share.
On an adjusted basis, the American holding company earned £1.02 per share in Q2. Walgreens generated £23.82 billion of sales in the recent quarter versus the year-ago figure of £22.77 billion. In the prior quarter (Q1), the Nasdaq-listed company had registered £227.41 million of net loss.
According to FactSet, experts had forecast the company to post a higher £26.59 billion of sales in the second quarter. Their estimate for adjusted per-share earnings stood at a lower 80 pence.
As per the Deerfield-headquartered company, U.S. comparable sales registered a 3.5% decline in Q2. In the United Kingdom, Boots comparable sales slumped 17.9%. In separate news from the United States, Pfizer said that the COVID-19 vaccine that it developed in collaboration with BioNTech showed 100% efficacy in a trial of twelve to fifteen-year-olds.
Chief Executive Roz Brewer’s comments on Wednesday
CEO Roz Brewer commented on the earnings report on Wednesday and said:
“Overall, we have achieved a good financial quarter with results well ahead of expectations, despite significant impacts from COVID-19, and we have raised our full-year EPS guidance. I am optimistic about our ability to drive sustainable, long-term value for our shareholders, while acknowledging that there is still work to be done to stabilize the base business.”
Walgreens lifted its guidance for the full financial year on Wednesday. It now expects its adjusted per-share earnings to see a 5% to 9% growth this year.
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, it is valued at £33.26 billion.