Walgreens Reports Lower Quarterly Sales, Fewer Prescriptions & COVID-19 Vaccinations

Walgreens Boots Alliance Inc's WBA Q4 FY22 sales decreased 5.3% Y/Y to $32.4 billion, down 3.2% on a constant currency basis, beating the consensus of $32.12 billion.
Adjusted EPS reached $0.80, down 30% on a constant currency basis, reflecting a robust prior-year quarter with higher COVID-19 vaccination volumes, beating the consensus of $0.77.
The pharmacy chain saw a nearly 9% drop in U.S. pharmacy sales, after giving 2.9 million COVID-19 vaccinations and 3.4 million PCR tests in the period. This compares with 13.5 million vaccinations in the same period a year earlier.
The unit was also weighed down by declines in AllianceRX Walgreens, the company's specialty and home-delivery pharmacy division.
Adjusted operating income reached $744 million, a decrease of 38.2% (CC).
Guidance: Walgreens expects FY23 adjusted EPS of $4.45-$4.65 (consensus of $4.53) as strong core business growth is more than offset by lapping FY22 COVID-19 execution and currency headwinds.
The company raised U.S. Healthcare's FY25 sales target to $11 billion-$12 billion, with the segment expected to achieve positive adjusted EBITDA by FY24.
Also Read: Walgreens Boots Alliance Takes Full Control Of CareCentrix
Price Action: WBA shares are down 0.19% at $31.88 during the premarket session on the last check Thursday.
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