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Walgreens (WBA) Fourth Quarter 2022 Earnings

walgreens boots alliance Sales beat expectations in the fourth quarter on Thursday as the drugstore chain transformed itself into a more healthcare-focused company.

The company expects full-year adjusted earnings per share for the next fiscal year to be in the range of $4.45 to $4.65, which it says is broadly in line with Wall Street expectations. Still, Walgreens said its business growth faces tough comparisons as it keeps up with strong demand for its coronavirus vaccine and is impacted by a stronger dollar.

The company’s shares rose about 4% in premarket trading.

Here’s what the company reported, compared to what analysts expected for the fourth quarter ended August 31. Based on Refinitiv data:

  • Earnings per share: 80 cents, adjusted forecast 77 cents
  • Earnings: $32.45 billion vs. $32.09 billion forecast

Sales decreased from the same period of the previous year. Including constant costs, Walgreens slipped into the red in his three months. Net loss was $415 million, or 48 cents per share, compared with net income of $627 million, or 72 cents per share, in the year-ago quarter.

The company said earnings were hit by non-cash impairment charges in its UK boots business and a long-term cost management program.a year ago walgreen We have set a cost savings target of $3.3 billion by 2024.

Walgreens has invested heavily to transform from a major drugstore chain into a large healthcare company. It uses VillageMD to open hundreds of clinics. invested $5.2 billion become majority owner of a primary care company. The company recently announced plans to accelerate his two acquisitions, CareCentrix, which coordinates home care and benefits, and Shields Health Solutions, a specialty pharmacy company.

Walgreens CEO Roz Brewer said in a news release that the next fiscal year “will be the year we accelerate our core growth and rapidly expand our U.S. healthcare business.”

At the end of the quarter, VillageMD had 334 clinics, 152 of which were adjacent to Walgreens stores. Walgreens has 70 Health Corners, designated spaces where registered nurses or pharmacists can schedule mammograms, screen patients for hypertension or diabetes, or assist with other health care needs. There is also a store in

Covid vaccines, which boosted Walgreens sales and foot traffic, are down significantly. In the fourth quarter, the drugstore chain gave him 2.9 million vaccinations. This is down from 4.7 million vaccines in Q3 and sharply down from 15.6 million in Q1 and 11.8 million in Q2.

Walgreens’ US retail and pharmacy segment sales in the fourth quarter were $26.7 billion, down 7.2% from the year-ago quarter. However, existing sales he increased by 1.6%.

Its international business has been hit hard by currency headwinds. Fourth quarter sales were $5.1 billion for him, down 6.6% from the same period last year. This includes a negative currency impact of 13.3%.

As customers return to stores, Walgreens also said it is investing in its employees to return to normal business hours. Digital sales growth in the US increased his 14% in the fourth quarter, adding to his 82% increase in the same period last year.

On Thursday, the company raised its outlook for its healthcare sector. For fiscal 2025, he expects sales to be $12 billion, not $11 billion.

As of Wednesday’s close, Walgreens shares are down nearly 39% so far this year. This trails the S&P 500, which is down about 25%. Walgreens shares fell about 2% to close at $31.94 on Wednesday.

Click here for the company’s financial results.

This story is a work in progress. Please check the latest information.

https://www.cnbc.com/2022/10/13/walgreens-wba-q4-2022-earnings.html Walgreens (WBA) Fourth Quarter 2022 Earnings

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