Walgreens Q3 Earnings Beat Estimates Stays Steady On Full-Year Earnings Estimates – $WBA $DIA

By John F. Heerdink, Jr.

As per reports, Walgreen Boots Alliance (WBA) recently exceeded Was Street’s quarterly estimates. The strength in earnings was driven by their UK-based Boots business. However, Walgreens has only maintained its full-year earnings forecast pointing toward the decreasing amount of COVID vaccinations as a concern.

Third Quarter Highlights:

The company reported that net earnings decreased by $289 million compared with $1.2 billion in the same period a year earlier.
A 74 percent drop in net earnings was reported, due to the opioid settlement with the State of Florida and declining vaccinations.
Adjusted Earnings per share were 96 cents, exceeding analysts’ expectations of 92 cents per share.
Third-quarter sales from continuing operations dropped 4.2 percent to $32.6 billion.
In the U.K., Boots’ comparable sales grew 2 percent with market share gains across all major categories.
The company said it still expects low single-digit growth in its adjusted earnings for the year and warned about costs related to investments in labor and in its new consumer health business.

Walgreens reported a $683 million charge related to its opioid settlement with the State of Florida in the current quarter to resolve all claims related to the distribution and dispensing of prescription opioid medications across its pharmacies in the state.

Chief executive officer Rosalind Brewer stated, “Third quarter results were broadly in line with our expectations, demonstrating the resilience of our business through our deep community connections and relevance to consumers. Walgreens Health achieved 65 percent pro forma sales growth with progress on several fronts, including adding Buckeye Health Plan as a strategic partner, already exceeding our 2022 target for covered lives, and launching our clinical trials business. With our decision to conclude the Boots strategic review, I firmly believe that our strategic actions are working to deliver long-term shareholder value.”

Walgreen Boots Alliance (WBA) is a pharmacy-led, health and well-being enterprise with a long history of trusted healthcare services, community pharmacy care, and pharmaceutical wholesaling dates. To learn more about Walgreen Boots Alliance (WBA) and to continue to track its progress please visit the Vista Partners Walgreens Boots Alliance Page.

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