Walgreens Boots Alliance Stock Jumps On Better Than Expected Q1 Earnings, Sticks To Annual Profit Forecast

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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