Walgreens Boots Alliance Inc. (NASDAQ: WBA) released its fiscal second-quarter financial results before the markets opened on Thursday. As one of the biggest pharmacy chains nationwide and a Dow Jones industrial average component, Walgreens is providing some insight into how its business is handling the ongoing COVID-19 pandemic.
The company said that it had $1.52 in earnings per share (EPS) and $35.82 billion in revenue, compared with consensus estimates that called for $1.46 in EPS and $35.26 billion in revenue. The same period of last year reportedly had $1.64 in EPS and $34.53 billion in revenue.
In terms of the specifics, sales increased 3.7% to $35.8 billion, an increase of 4.1% on a constant currency basis. Effects from the COVID-19 pandemic began at the end of the second quarter and were not material to overall results, according to Walgreens.
Adjusted net earnings decreased 11.8% year over year to $1.3 billion, on both a reported and constant currency basis. Adjusted EPS decreased 7.3% on both a reported and constant currency basis, compared with the same quarter a year ago.
Prior to the COVID-19 pandemic, the company was on track to maintain its guidance for full-year fiscal 2020, of roughly flat growth in adjusted EPS, at constant currency rates, with a range of plus or minus 3%. Second-quarter financial performance exceeded the company’s expectations.
Management was quick to note that the COVID-19 situation is ultimately temporary, given the many rapidly changing variables related to the pandemic. Accordingly, the company did not issue any guidance. So far, Wall Street is calling for $1.53 in EPS and $35.55 billion in revenue for the coming quarter.
Stefano Pessina, executive vice chair and chief executive, commented:
We are pleased to report second quarter results exceeding our expectations, with sequential improvement in comparable U.S. prescription volume and retail sales. During these unprecedented times of global uncertainty, Walgreens Boots Alliance is on the front lines of combating the COVID-19 pandemic. Our number one priority is to continue to provide essential services, products and information at this critical moment of need, demonstrating our unwavering commitment to our customers and patients, and to our people.
Walgreens stock closed Wednesday at $43.03, in a 52-week range of $40.52 to $64.50. The consensus price target is $54.89. Following the announcement, the stock was up about 2.5% at $44.10 in early trading indications Thursday.
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