Walgreens swings to a profit and raises forecast, but shares fall on fears vaccination boost will fade

Earnings

A person walks outside Duane Reade by Walgreens in Hell’s Kitchen on May 26, 2021 in New York City.
Noam Galai | Getty Images

Walgreens Boots Alliance said on Thursday that sales rebounded at its stores in its fiscal third-quarter and got a lift from Covid-19 shots, prompting the company to raise its outlook for the year ahead.

The drugstore chain’s shares were up more than 3% in premarket trading.

Here’s what Walgreens reported compared with what analysts were expecting for the third quarter ended May 31, based on Refinitiv data:

  • Earnings per share: $1.51 adjusted vs. $1.17 expected
  • Revenue: $34.03 billion vs. $33.76 billion expected

In the quarter, Walgreens posted a net profit of $1.20 billion, or $1.38 per share, compared with a net loss of $1.71 billion, or $1.95 per share, a year earlier.

Excluding items, the company earned $1.51 per share, higher than the $1.17 expected by analysts surveyed by Refinitiv.

Sales rose to $34.03 billion from $30.36 billion a year earlier, exceeding the $33.76 billion that analysts expected.

As of Wednesday’s close, Walgreens shares are up about 32% so far this year. Shares closed Wednesday up 1.19% to $52.61. The company’s market value is $45.48 billion.

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