Walgreens profits squeezed as Covid vaccine wanes, health-care investment rises

Walgreens Boots Alliance on Thursday reported quarterly sales and earnings that came in above expectations as it grew online sales and continued to administer Covid-19 vaccines.

The drugstore chain stood by its outlook for the full year, saying it expects adjusted earnings per share to grow by the low single-digits.

Shares of the company were down by about 2% in premarket trading.

Here’s what the company reported compared with what analysts were expecting for the three-month period ended May 31, based on Refinitiv data:

• Earnings per share: 96 cents adjusted vs. 92 cents expected
• Revenue: $32.6 billion vs. $32.06 billion expected

In the quarter, net income fell to $289 million, or 33 cents per share, from $1.2 billion, or $1.38 per share, a year earlier.

Excluding items, the company earned 96 cents per share, exceeding the 92 cents expected by analysts surveyed by Refinitiv.

Sales decreased to $32.6 billion from $34.03 billion a year earlier. That was higher than the $32.06 billion that analysts expected.

Earlier this week, Walgreens said it would halt plans to sell its United Kingdom-based Boots business, citing instability in the markets. The company said in January that it was looking into strategic options for that division, including a possible sale.

As of Wednesday’s close, Walgreens shares were down about 22% so far this year. Shares close Wednesday at $40.87, bringing the company’s market value to $35.30 billion.

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