Even as it considers strategic options for its European-based operation, Walgreens Boots Alliance beat Wall Street estimates for the second quarter aided by strong retail comparable sales.
In the quarter, company net earnings from continuing operations were $806 million, or $1.02 per diluted share, Walgreens stated, versus $918 million, or $1.06 per diluted share, in the year-before quarter.
Company net earnings attributable to continuing operations adjusted for one-time events were $1.38 billion, or $1.59 per diluted share, versus $1.1 billion, or $1.26 per diluted share, in the year-previous quarter.
WBA topped a MarketBeat-published analyst consensus adjusted diluted earnings per share estimate of $1.40 and revenue estimate of $33.33.
Sales were $33.76 billion versus $32.78 billion in the year-earlier quarter, the company reported. Operating income was $1.25 billion versus $832 million in the year-prior period while adjusted operating income was $1.66 billion versus $1.23 billion.
Among Walgreens divisions, the United States business segment generated second-quarter sales of $27.7 billion, up 1.2% from the 2021 period, as overall comparable sales gained 9.5% and retail comps advanced 14.7%. With tobacco and e-cigarettes excluded, comparable retail sales increased 15.7%, reflecting broad-based growth across all categories, the company maintained. For its part, health and wellness category sales increased 43.3% boosted by at-home COVID-19 tests and cough cold flu, while personal care and beauty increased by 9.7% and 6.5%, respectively. Operating income increased 67.9% to $1.4 billion in the quarter year over year, and adjusted operating income increased 36.5% to $1.6 billion.
In announcing second-quarter results, WBA CEO Rosalind Brewer said, “Second-quarter results demonstrated broad-based execution, driving strong comparable sales and robust earnings growth. We continue to make important strides along with our strategic priorities, building a consumer-centric, technology-enabled healthcare enterprise at the center of local communities. VillageMD and Shields are delivering tremendous pro forma sales growth compared to their year-ago standalone results, and our Walgreens Health segment is on track toward long-term targets. The strategic review of our Boots business is progressing, and our transformational actions are accelerating sustainable value creation.”
