Walgreens Boots Alliance surpassed estimates on earnings per share and revenue last quarter, in one of the company’s final reports as it prepares to go private.
Adjusted earnings per share were US$0.38, below the $0.63 seen one year ago but above Zacks estimates of $0.34. Revenue was $38.99 billion, up from $36.35 billion and beating estimates by 6.49%.
“Third quarter results reflect continued improvement in our U.S. Healthcare segment and benefits from our cost savings initiatives, while we continued to see weakness in our U.S. front-end sales,” said Walgreens Boots Alliance CEO Tim Wentworth.
“We remain focused on our turnaround plan, which will require time, disciplined focus and a balanced approach to manage future cash needs with investments necessary to navigate an evolving pharmacy and retail environment.”
Adjusted operating income was US$558 million, falling from $613 million one year ago. The company credits this to higher incentive accruals and a slump in retail sales in the United States.
The company’s net loss last quarter was US$175 million, compared with earnings of $344 million one year ago. Its adjusted net earnings were $334 million, down from $545 million.
Its U.S. Retail Pharmacy segment posted sales of US$30.72 billion, rising 7.8% year-over-year. Comparable pharmacy sales rose 11.8%, while comparable retail sales dropped 2.4%.
International sales were up 7.8% to US$6.2 billion, while U.S. healthcare sales fell from $2.13 billion to $2.10 billion.
Walgreens Boots Alliance did not issue full guidance for fiscal 2025, as it will be acquired by Sycamore Partners for US$10 billion by the end of the year and transition to a private company.
Its share price closed at US$11.38, above its previous close of $11.31. The company's market capitalisation is $9.85 billion.
