A person enters a Walgreens store in San Francisco, California, on Tuesday, April 13, 2021.
David Paul Morris | Bloomberg | Getty Images
Walgreens Boots Alliance on Thursday reported fiscal second quarter results that beat analysts’ expectations after the Omicron variant of Covid-19 fueled demand for booster shots and testing and increased foot traffic during the winter months.
The drugstore chain confirmed its outlook for the year. Adjusted earnings per share will grow in the low single digits.
Stocks fell less than 1% in premarket trading.
Here’s what Walgreens reported in comparison to analysts’ expectations for the second quarter ended February 28: based on Refinitiv data:
- Earnings per share: $1.59 adjusted versus $1.40 expected
- Revenue: $33.76 billion versus $33.4 billion expected
For the quarter, net income fell to $883 million, or $1.02 per share. from $1.03 billion, or $1.19 per share, in the prior-year period.
Excluding special items, the company earned $1.59 per share, up the $1.40 expected by analysts polled by Refinitiv.
Revenue rose to $33.76 billion from $32.78 billion last year, beating $33.4 billion expected by analysts.
According to Walgreens, U.S. retail sales rose 14.7% for the three-month period compared to the same period last year, the biggest gain in 20 years. The company said it made gains in all categories — particularly health and wellness items, including at-home Covid testing, over-the-counter cough, cold and flu medicines, and beauty.
At its UK-based boat chain, same-store retail sales rose 22% year-on-year, with market share gains in all major categories.
As of Wednesday’s close, Walgreens shares are down 9% so far this year. Shares closed at $47.46 on Wednesday, bringing the company’s market value to $40.97 billion.
Read the company’s press release here.
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