•
May 31, 2021

Walgreens Q3 2021 Earnings Report

Walgreens' third quarter 2021 results exceeded expectations, with the company raising its full-year guidance.

Key Takeaways

Walgreens Boots Alliance reported a strong third quarter, exceeding expectations with sales increasing by 12.1% to $34.0 billion and adjusted EPS growing by 83.4% to $1.51. The company raised its full-year guidance to around 10% growth in constant currency adjusted EPS from continuing operations.

Total sales increased 12.1 percent to $34.0 billion.

Total adjusted EPS increased 83.4 percent to $1.51.

The company raised guidance to around 10 percent growth in constant currency adjusted EPS from continuing operations.

Walgreens has administered more than 25 million COVID-19 vaccinations to date.

Total Revenue
$34B
Previous year: $34.6B
-1.7%
EPS
$1.38
Previous year: $0.83
+66.3%
Gross Profit
$7.15B
Previous year: $5.96B
+20.1%
Cash and Equivalents
$1.35B
Previous year: $768M
+75.1%
Free Cash Flow
$1.4B
Previous year: $657M
+113.1%
Total Assets
$91.9B
Previous year: $86.4B
+6.3%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

The company raised fiscal 2021 guidance from mid-to-high single digit growth to around 10 percent growth in constant currency adjusted EPS from continuing operations. The revised guidance reflects strong results in the third quarter and greater clarity on the impact of COVID-19 vaccinations.

Positive Outlook

  • Strong results in the third quarter
  • Greater clarity on the impact of COVID-19 vaccinations
  • Company raised fiscal 2021 guidance to around 10 percent growth in constant currency adjusted EPS from continuing operations.
  • Mass personalization boosted Walgreens retail sales by 100 basis points in the third quarter.
  • The company is on track to deliver in excess of $2 billion in annual cost savings by fiscal 2022.

Challenges Ahead

  • Challenges lie ahead
  • COVID-19 related costs
  • Higher growth investments
  • Adverse impacts from the store optimization programs
  • Travel locations in airports and train stations continued to face challenges.