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Walgreens
🇺🇸 NASDAQ:WBA
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•
Aug 31, 2020

Walgreens Q4 2020 Earnings Report

Walgreens reported results at the high end of expectations, adapting to changing customer needs amidst the COVID-19 pandemic.

Key Takeaways

Walgreens Boots Alliance reported a 2.3% increase in sales to $34.7 billion for the fourth quarter of fiscal year 2020. However, operating income decreased by 26.0% to $650 million, and EPS decreased by 42.8% to $0.43, impacted by COVID-19. The company introduced fiscal 2021 guidance of low single-digit growth in adjusted EPS at constant currency rates.

Sales increased 2.3 percent to $34.7 billion, up 2.3 percent on a constant currency basis.

Operating income decreased 26.0 percent to $650 million; Adjusted operating income decreased 27.7 percent to $1.1 billion, down 27.4 percent on a constant currency basis.

EPS decreased 42.8 percent to $0.43; Adjusted EPS decreased 28.2 percent to $1.02, down 27.9 percent on a constant currency basis; reflecting an estimated adverse COVID-19 impact of approximately $0.46.

Company introduced fiscal 2021 guidance of low single-digit growth in adjusted EPS at constant currency rates

Total Revenue
$34.7B
Previous year: $34B
+2.3%
EPS
$1.02
Previous year: $1.43
-28.7%
Gross Profit
$6.8B
Previous year: $7.23B
-5.9%
Cash and Equivalents
$516M
Previous year: $1.02B
-49.6%
Free Cash Flow
$1.7B
Previous year: $1.92B
-11.6%
Total Assets
$87.2B
Previous year: $67.6B
+29.0%

Walgreens

Walgreens

Walgreens Revenue by Segment

Forward Guidance

The company introduced fiscal 2021 guidance of low single-digit growth in adjusted earnings per share at constant currency rates.

Positive Outlook

  • Anticipates a gradual reduction in COVID-19 impacts.
  • Expects strong adjusted EPS growth in the second half of fiscal 2021 as recovery plans take hold.
  • Significant investments in fiscal 2021 are expected to accelerate the company’s customer-centric approach.
  • Focus on transforming omnichannel capabilities and offerings across retail and healthcare.
  • Investments are expected to contribute to the second-half growth profile.

Challenges Ahead

  • First half results will continue to be negatively impacted when compared with the pre-COVID-19 first half of fiscal 2020.
  • The evolution of the pandemic remains uncertain.
  • COVID-19 could present both incremental risks
  • COVID-19 could present opportunities for the company’s business.
  • Guidance anticipates a continued gradual reduction in COVID-19 impacts

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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