Walgreens Boots Alliance (NYSE:WBA) announced on Thursday it exceeded fiscal fourth-quarter sales expectations, as the drugstore chain turns itself into a more health-care focused company.
The company said it anticipates full-year adjusted earnings per share of $4.45 to $4.65 in the coming fiscal year, which is about in line with what Wall Street expected. Yet Walgreens said its business growth will face tough comparisons as it laps strong demand for Covid vaccines and gets hits by the strength of the dollar.
Earnings per share for the quarter registered 80 cents, adjusted, vs. 77 cents expected, on revenue of $32.45 billion vs. $32.09 billion expected
Sales declined from the previous year’s quarter. Including certain costs, Walgreens swung to a loss in the three-month period. Its net loss was $415 million, or 48 cents per share, compared with a net income of $627 million, or 72 cents per share, a year earlier.
On a call with investors, Global CFO James Kehoe said Walgreens’ profit took the biggest hit from a $780 million non-cash impairment charge in its Boots UK business related to trademarks and licenses. It also had costs associated with its long-term cost management program, as it shuttered some stores. A year ago, Walgreens laid out a cost savings goal of $3.3 billion by 2024.
Walgreens has made significant investments to transform from a major drugstore chain to a large health-care company. It is opening hundreds of doctor offices with VillageMD. It invested $5.2 billion to become majority owner of the primary-care company.
WBA shares acquired 85 cents, or 2.7%, to $32.79.
