Walgreens (WBA) Third Quarter 2022 Earnings

Walgreens Boots Alliance On Thursday, it reported higher-than-expected quarterly sales and earnings as retail sales rebounded and online purchases grew.

But shares fell about 2% in pre-market trading, as demand for Covid-19 vaccines faded and the company reiterated rather than raise its forecast for the year. It said it expects low single digit adjusted earnings per share to grow.

This is what the company reported, compared to what analysts had expected for the three-month period ending on May 31, Based on Refinitiv data:

• Earnings per share: 96 cents adjusted vs. 92 cents expected
• he won: $32.6 $1 billion vs. $32.06 billion projected

In the quarter, net income fell to $289 million, or 33 cents per share, From $1.2 billion, or $1.38 a share, a year ago. The sharp drop reflected a $683 million cost related to the opioid settlement with Florida, declining US drugstore sales as they benefited from a large volume of Covid-19 vaccines a year ago and investments in expanding the healthcare business.

Excluding items, the company earned 96 cents per share, topping the 92 cents expected by analysts surveyed by Refinitiv.

Sales decreased to $32.6 billion From $34.03 billion a year ago. Analysts expected $32.06 billion.

Walgreens’ sales have grown during the pandemic as customers have turned to its stores for Covid-19 vaccines and tests. That demand is waning, prompting the company to drive growth in other ways.

The company administered 4.7 million vaccines in the third quarter, down sharply from 15.6 million in the first quarter and 11.8 million in the second quarter.

Healthcare is becoming a big boost, with Walgreens Make a deal with VillageMD To open hundreds of doctors’ offices in its stores.

Walgreens has also expanded online options, such as roadside pickup and delivery, to try to prevent customers from purchasing toothpaste, soap, and other items from online players such as Amazon. The company said its digital options gained popularity this quarter, growing 25% year-over-year, on top of 95% growth in the same period last year. The company said the growth was driven by 2.8 million orders on the same day.

In the US and UK, retail sales are up as consumers are out again. Same-store sales in the US rose 2.4%, excluding tobacco, and 24% for British retail.

Earlier this week, Walgreens said it would discontinue plans to sell the UK-based Boots business, Citing the instability in the markets. The company said in January that it was Consider the strategic options for this sectionincluding potential sale.

As of Wednesday’s close, Walgreens shares are down about 22% so far this year. Shares closed Wednesday at $40.87, bringing the company’s market capitalization to $35.30 billion.

Read the company’s earnings statement here.

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