A person walks in front of Walgreens’ Duane Reade in Hell’s Kitchen on May 26, 2021 in New York City.
Noam Galai | Getty Images
Walgreens Boots Alliance After a stronger-than-expected third quarter of the fiscal year, he raised his annual outlook on Thursday and outlined his strategy for promoting future growth.
The drugstore chain said it now anticipates adjusted earnings per share growth of about 10% for the year based on its rebounding sales and the boost it received from Covid-19 shots. Previously, she had forecast mid to high single digit growth. So far, the company says it has administered more than 25 million vaccines and started offering walk-in and same-day appointments.
In pre-trading hours, the shares gained more than 2%.
The company is in the middle of a turnaround, led by its new CEO Roz Brewer, former Chief Operating Officer of Starbucks. On Thursday, she shared more details on her strategic priorities. Among them, the drugstore chain said it would become a neighborhood health destination if it opened primary care clinics in hundreds of its stores with VillageMD and expanded the use of automation to give pharmacists more time to answer customers’ health questions. It said it also plans to focus on the digital so that more people use its app and receive personalized offers to encourage purchases. And it will continue to work to cut annual costs by more than $ 2 billion by the next fiscal year.
- “This quarter’s results show continued momentum and while the challenges lie ahead, we are in a strong position to grow and renew our core retail and pharmacy businesses for the future,” Brewer said in a press release.
Here’s what Walgreens reported versus analyst expectations for the third quarter ended May 31: based on refinitive data:
- Earnings per share: adjusted $ 1.51 versus expected $ 1.17
- Revenue: Expected $ 34.03 billion versus $ 33.76 billion
For the quarter, Walgreens posted net income of $ 1.20 billion, or $ 1.38 per share. compared to a net loss of $ 1.71 billion or $ 1.95 per share last year.
With no items, the company made $ 1.51 per share, more than the $ 1.17 expected by analysts surveyed by Refinitiv.
Revenue rose to $ 34.03 billion from $ 30.36 billion last year, surpassing analysts’ forecast of $ 33.76 billion.
At the close of trading on Wednesday, Walgreens stock is up about 32% so far this year. Shares closed 1.19% on Wednesday to $ 52.61. The company’s market value is $ 45.48 billion.