Walgreens beats sales expectations but lowers earnings outlook due to challenging retail environment.

From CNBC: 2024-03-28 10:52:26

Walgreens reported fiscal second-quarter sales that beat expectations but lowered earnings outlook due to a challenging retail environment. The company posted a steep net loss of nearly $6 billion linked to a drop in investment value. Despite financial woes, Walgreens remains confident in its ability to invest in business growth. The company aims to save $1 billion through cost-cutting efforts. Walgreens reported earnings per share of $1.20, surpassing analysts’ expectations by 38 cents. The company narrowed its adjusted earnings forecast for fiscal 2024 to $3.20-$3.35 per share. Walgreens credited a lift in pharmacy services and lower effective tax rate for offsetting factors impacting earnings. Total prescriptions filled in the quarter, including immunizations, reached 305.7 million, exceeding the year-ago period by more than 2%. Walgreens’ U.S. health-care division saw a 33% sales increase compared to the same period last year. Revenue for this division was $2.18 billion. The company noted higher sales growth across all business segments in the fiscal second quarter. Speciality pharmacy company Shields Health Solutions saw a 13% revenue growth due to the acquisition of new contracts and expansions of existing partnerships.



Read more at CNBC: Walgreens (WBA) earnings Q2 2024