Pedestrians walk past a Walgreens shop in New York.
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Walgreens Boots Alliance on Thursday beats the third quarter tax revenue framework as higher prescription drug sales helped the company recover its position after CEO Stefano Pessina called last quarter "the hardest" since the company was formed.
Walgreens reported adjusted earnings of $ 1.47 per share, beating analysts asked by Refinitiv's expectations of $ 1
Shares in the company increased by 1.4% in premarket trading.
This is what the company reported compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Adjusted earnings per share. share: $ 1.47, against $ 1.43 expected
- Revenue: $ 34.59 billion against $ 34.46 billion expected
Walgreens reported a net income of $ 1.03 billion in Q3 or 1.13 The dollar per share, a decline of 12.1% from $ 1.34 billion $ 1.35 per share, reported the company a year earlier. On an adjusted basis, Walgreens earned $ 1.47 per share, over $ 1.43 per share analysts expected.
Sales in the quarter, which ended May 31, increased 0.7% from the previous year, or 2.9% after having accounted for exchange rate fluctuations. Walgreens attributed the increase to growth in its US retail pharmacy business and pharmaceutical wholesale business. Sales in their US pharmacies opened for at least one year dropped 1.1% from the previous year, as Walgreens attributed to its "de-emphasis" of tobacco products.
Walgreens maintained its full-year earnings warning to be roughly flat. The company cut its outlook last quarter from the previously managed 7% to 12% growth.
Walgreens and its competitors are under pressure, and insurance companies pay pharmacies less to fill prescriptions and consumers buy fewer household items at pharmacies and more online. In contrast to these challenges, Pessina calls last quarter the "hardest" since Walgreens bought European drug chain Alliance Boots in late 2014 to form the Walgreens Boots Alliance.
In his latest report, Walgreens said that increased prescription drug prices led to an increase of 4.3% US pharmacy sales.
"After a difficult second quarter, we made progress in the third quarter against the strategic goals we set, and we are pleased to report an improvement in our comparable growth in the United States compared to the first half," Pessina said. Signed more than a dozen partnerships, with companies such as Sprint, FedEx, Kroger and LabCorp, which are primarily intended to drive more traffic to their stores, while these deals can help Walgreens test new store formats, analysts are skeptical of their desire meaningful revenue growth.