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Aug 31, 2022
Walgreens Q4 2022 Earnings Report
Walgreens' Q4 2022 earnings exceeded expectations, with long-term targets raised for the U.S. Healthcare segment.
Key Takeaways
Walgreens Boots Alliance reported Q4 sales of $32.4 billion, a 5.3% decrease year-over-year. The company's loss per share was $0.48, while adjusted EPS decreased by 31.8% to $0.80. Despite these declines, Walgreens is raising its U.S. Healthcare fiscal 2025 sales target and expects low-teens adjusted EPS growth in fiscal year 2025 and beyond.
Q4 sales decreased by 5.3% year-over-year to $32.4 billion.
Loss per share from continuing operations was $0.48, a decrease of $0.89 from the year-ago quarter.
Adjusted EPS decreased 31.8% to $0.80, down 30.0% on a constant currency basis.
Raising U.S. Healthcare fiscal 2025 sales target to $11 billion to $12 billion, with the segment expected to achieve positive adjusted EBITDA by fiscal year 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Walgreens Boots Alliance expects an adjusted EPS of $4.45 to $4.65 for the full fiscal year 2023. The company is also raising the U.S. Healthcare fiscal year 2025 sales target to $11 billion to $12 billion.
Positive Outlook
- Healthy core business growth of 8 to 10 percent in constant currency
- Raising U.S. Healthcare fiscal year 2025 sales target to $11 billion to $12 billion
- The U.S. Healthcare segment is expected to achieve positive adjusted EBITDA by fiscal year 2024.
- Reconfirmed expectation to achieve low-teens adjusted EPS growth in fiscal year 2025.
- Management will provide additional details during the earnings call presentation.
Challenges Ahead
- Adverse currency movements of approximately 2 percent
- Headwind of 15 to 17 percent from lower COVID-19 vaccination volumes.
- Operating loss in the quarter reflects a $783 million non-cash impairment charge related to intangible assets in Boots UK.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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