- Walgreens Boots Alliance Inc WBA reported Q3 earnings of $1.38, beating the consensus estimate of $1.17. Revenue increased 12.1% Y/Y to $34.0 billion, slightly ahead of the consensus of $33.76 billion.
- Sales and profit strengthened as the vaccination campaign helped ease pandemic conditions for its stores' pharmacy and retail businesses.
- It has now given more than 25 million vaccinations via walk-in appointments, employer partnerships, and mobile clinics.
- Sales were up 10.4% on a constant currency basis, reflecting strong growth in the International segment.
- The United States segment sales of $28.7 billion increased 5.1% Y/Y. Comparable sales increased 6.4%, reflecting an 8.4% and 1.7% increase in comparable pharmacy and retail sales, respectively.
- The International segment sales witnessed an increase of 75.8% to $5.3 billion, including a favorable currency impact of 17.1%. Sales increased 58.7% on a constant currency basis,
- Adjusted operating income increased 82.9% on a reported currency basis to $1.5 billion, buoyed by strong adjusted gross profit growth across both pharmacy and retail in the U.S. and a rebound in International segment sales.
- Adjusted net earnings from continuing operations almost doubled to $1.2 billion.
- Adjusted gross margin expanded to 21.2% from 19.9% a year ago.
- Outlook: WBA raised FY21 guidance from mid-to-high single-digit growth to around 10% growth in constant currency-adjusted EPS from continuing operations.
- The company completed the divestiture of the Alliance Healthcare businesses to AmerisourceBergen for $6.5 billion in cash and stock.
- A portion of the divestiture proceeds was used to eliminate $3.3 billion in debt. The remaining will be used to accelerate the growth of its core retail pharmacy and healthcare businesses.
- Price Action: WBA shares are down 7% at $48.92 during the market session on the last check Thursday.
- Photo by Anthony92931 via Wikimedia
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