Categories AlphaGraphs, Earnings, Retail

Earnings: Walgreens Boots Alliance beats in Q1, announces cost management program

Walgreens Boots Alliance (WBA) Thursday reported first-quarter results that surpassed analysts’ expectations. Net sales increased 10% during the quarter to $33.8 billion, slightly higher than $33.58 billion expected by analysts.

Meanwhile, earnings rose 14% to $1.46 per share during the first quarter. This is 3 cents higher than analysts’ prediction of $1.43 per share. Walgreens shares slid 0.4% during pre-market trading, immediately following the announcement.

Walgreens Boots Alliance first quarter 2019 Earnings Infographic

Comparable pharmacy sales increased 2.8% in the US, while in the UK, it declined 3.5%. Comp sales in the UK were hurt by a “weak retail environment.”

CEO Stefano Pessina said, “Today we are reaffirming our fiscal 2019 guidance and announcing the launch of a new transformational cost management program, which is targeting annual cost savings of more than $1 billion by the end of the third year, to better position ourselves to meet our long-term targets.”

Walgreens also reiterated its outlook of 7-12% growth in fiscal 2019 adjusted EPS at constant currency rates.

Walgreens Q4 earnings beat; stock tanks on sales miss

Currently, there are multiple challenges facing the conventional drug store operators in America, and the most serious among them is the inroads being made by Amazon (AMZN) into the drug retail space after the acquisition of PillPack.

Last week, Walgreens suffered a blow after Goldman Sachs downgraded it and cut the price target, citing the fast-changing dynamics of the drug retail sector. The research firm believes the management of Walgreens should be doing much more to tackle the headwinds than just forge partnerships with businesses across industries, such as the alliance with FedEx (FDX) and Kroger (KR).


Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips 

Most Popular

CL Earnings: Key quarterly highlights from Colgate-Palmolive Company’s Q4 2022 financial results

Colgate-Palmolive Company (NYSE: CL) reported fourth quarter 2022 earnings results today. Net sales increased 5% year-over-year to $4.62 billion. Organic sales growth was 8.5%. Net income attributable to Colgate-Palmolive Company was

Key highlights from Chevron Corporation’s (CVX) Q4 2022 earnings results

Chevron Corporation (NYSE: CVX) reported fourth quarter 2022 earnings results today. Total revenues and other income were $56.4 billion compared to $48.1 billion in the year-ago period. Net income attributable

AXP Earnings: All you need to know about American Express’ Q4 2022 earnings results

American Express Company (NYSE: AXP) reported fourth quarter 2022 earnings results. Consolidated total revenues net of interest expense were $14.2 billion, up 17% from a year ago. Net income was

Add Comment
Viewing Highlight