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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
Walgreens
Walgreens
Walgreens Revenue by Segment
Revenue by Segment
U.S. Pharmacy Revenue
CapyFin.comInternational Revenue
CapyFin.com 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