Walgreens Boots Alliance Inc. (NASDAQ: WBA) slid on Thursday after the company reported its fiscal third-quarter financial results. The company said that it had $0.83 in earnings per share (EPS) and $34.6 billion in revenue, which fell short of consensus estimates that called for $1.17 in EPS and $34.35 billion in revenue. The same period of last year reportedly had EPS of $1.47 in EPS and revenue of $34.59 billion.
During the fiscal third quarter, sales increased 0.1%, or 1.2% on a constant currency basis, led by Retail Pharmacy USA comparable sales growth of 3.0%.
Retail Pharmacy USA segment sales increased 3.2% to $27.4 billion, including the impact of previously announced store closures. Sales in comparable stores increased 3.0% from the year-ago quarter.
Retail Pharmacy International had third-quarter sales of $1.9 billion, a decrease of 31.5% year over year, including an adverse currency impact of 5.3%. Sales decreased 26.2% on a constant currency basis, mainly due to a 27.7% decrease in Boots UK sales as foot traffic in stores was severely disrupted by COVID-19 restrictions.
Pharmaceutical Wholesale had a third-quarter sales increase of 0.6% to $5.9 billion, including an adverse currency impact of 4.8%. On a constant currency basis, sales increased 5.3%, led by the United Kingdom and Germany.
Net cash from operating activities totaled $3.4 billion, an increase of $183 million from last year. Free cash flow increased 23.7% to $2.4 billion. The company ended the quarter with $768 million in cash and cash equivalents on the books, compared with $1.02 billion at the end of fiscal 2019.
Looking ahead, Walgreens expects to see full fiscal year EPS in the range of $4.65 to $4.75, including an estimated impact of COVID-19 of $1.03 to $1.14 per share. For the year, analysts are calling for $5.42 in EPS and $139.26 billion in revenue.
Walgreens stock traded down 9% on Thursday, at $38.41 in a 52-week range of $36.65 to $64.50. The consensus price target is $45.76.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.