Walgreens Boots Alliance (NASDAQ:WBA) on Thursday reported fiscal first-quarter earnings that beat Wall Street’s estimates after an early flu season boosted demand for cough and cold medicine.
The company said it also raised its full-year revenue outlook due in part to its U.S. health-care segment’s just-sealed acquisition of Summit Health. For the most recent quarter, however, the segment’s revenue came in below expectations.
Earnings per share proved $1.16, adjusted, vs. $1.14 expected
Revenue came in at $33.38 billion vs. $32.84 billion expected
Despite the strong sales, Walgreens swung to an unadjusted loss of $3.7 billion, or $4.31 per share, for the three-month period that ended Nov. 30, compared with net income of $3.58 billion, or $4.13 per share, a year earlier.
The loss was driven by a $5.2 billion settlement Walgreens was ordered to pay for opioid-related litigation after a number of states alleged the company mishandled prescriptions and should’ve realized they were prescribing the ultra-addictive drug too often.
Thanks to an early flu season and strong demand for over-the-counter cough and cold medicine, sales jumped to $33.38 billion, down slightly from $33.9 billion a year earlier. The company also saw a boost in beauty and personal-care sales, which helped offset losses from a dip in demand for COVID vaccines and home test kits, which drove profits in previous quarters.
For the last five quarters, Walgreens has beat Wall Street’s expectations as the ubiquitous drugstore chain continues to transform itself from a pharmacy-led retailer to a broader health-care company.
WBA shares tumbled $2.57, or 6.9%, to $34.92.
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