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Feb 29, 2024
Walgreens Q2 2024 Earnings Report
Walgreens reported a mixed second quarter with sales growth offset by a net loss due to impairment charges, while adjusted EPS increased slightly.
Key Takeaways
Walgreens Boots Alliance (WBA) announced its fiscal 2024 second quarter results, revealing a 6.3% increase in sales to $37.1 billion, but a net loss of $5.9 billion due to a $5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill. Adjusted EPS increased by 3.4% to $1.20. The company narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35.
Sales increased 6.3% year-over-year to $37.1 billion, or 5.7% on a constant currency basis.
Loss per share was $6.85, compared to earnings per share of $0.81 in the year-ago quarter, impacted by a $5.8 billion after-tax non-cash impairment charge.
Adjusted EPS increased 3.4% to $1.20, or 2.8% on a constant currency basis.
Fiscal 2024 adjusted EPS guidance narrowed to $3.20 to $3.35.
Revenue by Segment
Forward Guidance
Walgreens Boots Alliance narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35, reflecting challenges in the retail environment, the early wind-down of the sale-leaseback program, and lower earnings due to Cencora share sales, offset by pharmacy services execution and a lower adjusted effective tax rate.
Positive Outlook
- Execution in pharmacy services is expected to offset some challenges.
- A lower adjusted effective tax rate is anticipated.
- U.S. Healthcare adjusted EBITDA is maintained to be breakeven at the midpoint of the guidance range.
- Company confident in goal of achieving $1 billion in cost savings this year.
- Team members are powering progress as we map growth opportunities.
Challenges Ahead
- Challenging retail environment in the U.S. is impacting performance.
- Early wind-down of the sale-leaseback program is creating headwinds.
- Lower earnings are expected due to Cencora share sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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