Zinger Key Points
- Walgreens reported Q1 sales of $39.5 billion, up 7.5% YoY, surpassing the $37.3 billion consensus.
- U.S. Healthcare sales rose to $2.2 billion, with VillageMD up 9%, CareCentrix up 16%, and Shields up 30%. Retail sales fell 6.2% YoY.
On Friday, Walgreens Boots Alliance Inc (NASDAQ: WBA) reported first-quarter sales of $39.46 billion, up 7.5% year over year (+6.9% on constant currency), beating the consensus of $37.28 billion, reflecting sales growth across all segments.
Adjusted operating income was $593 million compared to adjusted operating income of $687 million in the year-ago quarter, reflecting lower U.S. retail sales and lapping prior year sale-leaseback gains, partly offset by cost savings initiatives and growth in the U.S. Healthcare segment.
Adjusted EPS was $0.51, down from $0.66 a year ago, beating the consensus of $0.37, according to data from Benzinga Pro.
Also Read: Walgreens Faces Strategic Challenges, Analysts Are Cautiously Optimistic
The U.S. Retail Pharmacy segment sales reached $30.9 billion, up 6.6%. Comparable sales increased 8.5%.
Pharmacy sales increased by 10.4%, and comparable pharmacy sales increased by 12.7%, driven by higher branded drug inflation and prescription volume.
Comparable prescriptions increased by 2.3%, and prescriptions excluding immunizations increased by 3.5% compared to a year ago.
Total prescriptions filled in the quarter, including immunizations, increased 1.5% to 316.3 million.
Retail sales decreased 6.2%, and comparable retail sales decreased 4.6% compared with the year-ago quarter, mirroring a weaker cough cold flu season and lower sales in discretionary categories.
The U.S. Healthcare segment's sales were $2.2 billion. VillageMD sales increased 9%, CareCentrix sales increased 16%, and Shields sales rose 30%.
Guidance: Walgreens Boots Alliance maintains fiscal 2025 adjusted EPS guidance of $1.40 – $1.80 versus the consensus of $1.52.
The company expects growth in U.S. Healthcare and International offset by pressure in U.S. Retail Pharmacy largely driven by weaker retail front end performance.
Price Action: WBA stock is up 16.3% at $10.72 during the premarket session at last check Friday.
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