Categories AlphaGraphs, Analysis, Earnings, Health Care

Walgreens Boots (WBA) earnings preview: No surprises expected in Q4 report

It has been a tough year for Walgreens Boots Alliance (NASDAQ: WBA) so far, with the stock losing steadily amid muted sales growth and falling margins. The drugstore operator is all set to release its fourth-quarter financial results on Monday before the opening bell.

The consensus earnings estimate for the quarter is $1.41 per share, down 5% from last year. Sales are forecast to rise about 1% $33.89 billion. The bottom-line surpassed estimates in three of the trailing four quarters.

Walgreens’ (WBA) Q3 results beat estimates

Like in the previous quarters, prescriptions transferred from Rite Aid stores and contributions from the revamped contract with Express Scripts will likely add to sales growth in retail pharmacy, the company’s main operating unit. Initial estimates indicate positive comparable store sales for the August-quarter. These factors might help the pharmacy segment in the US to achieve strong volume growth.


It is estimated that the drug chain’s revised tobacco policy would weigh on overall performance this time, when compared to last year. Earlier this year, the management announced plans to impose curbs on tobacco sales in stores across the country. Also, the decline in store footfall due to the ongoing reorganization may have a negative impact on volumes.

Overseas Market

The overseas markets, meanwhile, paint a bleak picture, owing to pricing issues and the general weakness in retail markets, especially in Europe. This will be partially offset by the positive trend in the company’s wholesale business in emerging markets. Going forward, the general uptick in prescription volumes will contribute to sales growth, though there is no clarity with regard to the management’s strategy to revive growth.

Mixed Q3

For the third quarter, the company reported sales of about $35 billion, which was broadly unchanged from the year-ago period. Earnings, on an adjusted basis, dropped 4% annually to $1.47 per share. The results topped the Street view.

Also see: Walgreens Q3 2019 Earnings Conference Call Transcript

A few months ago, Walgreens shares plunged to a six-year low and maintained the downtrend since then. In the past twelve months, the stock lost about 29%, while the healthcare sector and the general market registered strong growth.

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Viewing Highlight