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Feb 28, 2021

Walgreens Q2 2021 Earnings Report

Walgreens' Q2 2021 financial results surpassed expectations, with the company raising its guidance for the fiscal year.

Key Takeaways

Walgreens Boots Alliance reported a 4.6% increase in sales to $32.8 billion for the second quarter of fiscal 2021. EPS increased 10.9% to $1.19, and the company raised its full-year EPS guidance.

Sales increased 4.6 percent to $32.8 billion.

Total earnings per share (EPS) increased 10.9 percent to $1.19.

Company raised guidance to mid-to-high single digit growth in constant currency adjusted EPS from both total and continuing operations

Walgreens has administered more than 8 million COVID-19 vaccines to date.

Total Revenue
$32.8B
Previous year: $35.8B
-8.5%
EPS
$1.26
Previous year: $1.52
-17.1%
Gross Profit
$6.78B
Previous year: $7.02B
-3.4%
Cash and Equivalents
$1.03B
Previous year: $792M
+30.1%
Free Cash Flow
$1.1B
Previous year: $1.1B
+0.0%
Total Assets
$90.9B
Previous year: $90B
+1.0%

Walgreens

Walgreens

Walgreens Revenue by Geographic Location

Forward Guidance

The company raised fiscal 2021 guidance to mid-to-high single digit growth in constant currency adjusted EPS from both total and continuing operations.

Positive Outlook

  • Revised guidance reflects first-half performance above expectations
  • Anticipated strong growth in the second half of the fiscal year
  • Walgreens has administered more than 8 million COVID-19 vaccinations
  • Walgreens is on track to open 40 Village Medical at Walgreens locations by the end of the summer.
  • MyWalgreens membership grew to 56 million

Challenges Ahead

  • The situation continues to be fluid in the second half due to COVID-19.
  • Operating income from continuing operations was $832 million, compared with $1.1 billion in the same quarter a year ago.
  • Adjusted operating income from continuing operations was $1.2 billion, a decrease of 22.5 percent.
  • The decreases reflect adverse COVID-19 impacts in the United States and International markets
  • Comparable retail sales decreased 3.5 percent compared with the same quarter a year ago, reflecting the weaker cough, cold and flu season