Walgreens results top estimates as drugstore chain works to slash costs
Walgreens on Friday reported fiscal first-quarter earnings and revenue that topped expectations, as it shutters stores and cuts other costs to steer itself out of a rough spot.
Here's what Walgreens reported for the three-month period ended Nov. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: 51 cents adjusted vs. 37 cents expected
51 cents adjusted vs. 37 cents expected Revenue: $39.46 billion vs. $37.36 billion expected
Even after the big beats, Walgreens maintained its fiscal 2025 adjusted earnings guidance of $1.40 to $1.80 per share. The company did not include annual sales guidance in its release. In October, Walgreens said it expects revenue for the fiscal year of $147 billion to $151 billion.
Shares jumped about 10% in premarket trading.
The company capped off a rocky past year marked by pharmacy reimbursement pressure, softer consumer spending and challenges related to its push into primary care, among other issues. The results come amid reports that the company is in talks to sell itself to private equity firm Sycamore Partners.
During the fiscal first quarter, Walgreens booked sales of $39.46 billion, up 7.5% from the same period a year ago, as its three business segments grew.
The company reported a net loss of $265 million, or 31 cents per share, for the fiscal first quarter. It compares with a net loss of $67 million, or 8 cents per share, for the year-earlier period.
Walgreens said the loss was primarily driven by higher operating losses, which reflect its multiyear plan to close underperforming stores. That includes 1,200 over the next three years, with 500 in fiscal 2025 alone.
Walgreens has around 8,500 retail pharmacy locations across the U.S., according to its website.
Excluding certain items, adjusted earnings were 51 cents per share for the quarter.
The first-quarter results "reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models," Walgreens CEO Tim Wentworth said in a release.
He added that "while our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating Model."
