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The Walgreens Boots Alliance on Thursday exceeded Wall Street’s expectations for fourth-quarter earnings as demand for the Covid-19 vaccine surged amid rising employer obligations.
In pre-market trading on Thursday, stock prices rose more than 2%.
The drugstore chain administered 13.5 million vaccines in three months. This is about twice the expected number of about 7 million in three months. It’s ready for another wave of vaccination, as people are expected to get booster shots and smaller children are expected to qualify for shots sooner.
“Mandate plays a role,” CEO Roz Brewer said in an interview with CNBC’s Bertha Coombs. “Many companies, organizations, cities and municipalities require it, and I think I have to tell people,” I need to go to work, so I have to get this vaccine. ” So it is producing an increase. And we are looking at it in our store. “
In addition, she said people are concerned about getting Covid, especially about delta variants.
Walgreens said that in addition to the increase in vaccination, there was a surge in sales from the Covid test at home and a recovery in demand for over-the-counter drugs for colds, coughs and the flu.
He also said he had achieved his goal of saving $ 2 billion annually from the business a year ahead of schedule.
The drugstore chain will host virtual investors late Thursday morning. Walgreens’ new CEO, Brewer, is expected to rebrand the company and develop strategies to drive growth. We also plan to share the outlook for the next fiscal year.
Compared to what analysts expected in the fourth quarter, which ended August 31, Walgreens reported: Based on Refinitiv data:
- Profit per share: Adjusted $ 1.17 vs. Forecast $ 1.02
- Revenue: Forecast of $ 34.26 billion vs. $ 33.30 billion
Net income increased to $ 627 million, or 72 cents per share, for the quarter. From $ 373 million a year ago (43 cents per share). Walgreens earned $ 358 million, or 41 cents per share, from continuing operations in the last quarter.
However, excluding items, the company is making $ 1.17 per share, which is higher than the $ 1.02 forecast by analysts surveyed by Refinitiv.
Sales increased to $ 34.26 billion From $ 30.37 billion last year, higher than analysts expected $ 33.30 billion.
Online and US Open Walgreens store sales increased 8.1% year-over-year as consumers vaccinated with the Covid-19 vaccine and filled out more prescriptions. Sales of health and wellness products surged 14% year-on-year as consumers purchased over-the-counter medications for Covid tests, vitamins, coughs, colds and the flu at home.
According to Brewer, the Covid vaccine has had a “halo effect” in over-the-counter sales. She said that when people walked to the pharmacy for jabs or waited 15 minutes after the shot, some people bought other types of products, from beauty items to allergy remedies. She said Walgreens wants to increase the number of other types of vaccines it administers, such as for Hepatis B.
Its international segment, including the UK-based chain Boots, has recovered after the Covid-19 restrictions were lifted in July. Online and Boots UK store sales increased 11.4% in pharmacy services and 15% in retail compared to the quarter at least a year ago.
According to the company, traffic at boot stores on main streets, such as near offices and commuting hubs, is recovering, but still below pre-pandemic levels.
The drugstore chain says it has administered more than 40 million Covid vaccines so far. Vaccination peaked in the third quarter when 17 million shots were administered.
As of Wednesday’s closing price, the Walgreens Boots Alliance’s share has risen by about 19% this year. The company has a market capitalization of $ 40.88 billion. Wednesday’s closing price was less than 1% at $ 47.26.
Read the company press release here.
Walgreens Boots Alliance (WBA) Q4 2021 Revenue
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