Soft retail results hit Walgreens Boots Alliance, as second-quarter earnings declined and revenues increased, but both exceeded Wall Street estimates.
Company net loss was $2.85 billion, or $3.30 per diluted share, versus a company net loss of $5.91 billion, or $6.85 per diluted share, in the year-before quarter. Adjusted for one-time events, company net earnings were $543 million, or 63 cents per diluted share, versus $1.04 billion, or $1.20 per diluted share, in the year-previous period.
An analyst consensus estimate from Zacks Investment Research called for Walgreens to post earnings per adjusted diluted share of 53 cents and revenues of $37.92 billion.
The company reported sales of $38.59 billion versus $37.05 billion in the year-earlier quarter. Operating loss was $5.57 billion versus $13.17 billion in the year-prior period, while adjusted operating income was $785 million versus $900 million.
For the U.S. Retail Pharmacy segment, sales were $30.38 billion and adjusted operating income was $487 million versus $28.86 billion and $752 million, respectively, in the year-past quarter, Walgreens stated. Retail comparable sales slipped 2.8% year over year, with the change driven by lower sales in discretionary categories including beauty, seasonal and general merchandise.
For the full year, company net loss was $3.12 billion, or $3.61 per diluted share, versus a company net loss of $5.98 billion, or $6.93 per diluted share, in the year before. Adjusted company net earnings were $983 million, or $1.13 per diluted share, versus $1.61 billion, or $1.86 per diluted share, in the year previous.
Sales were $78.05 billion versus $73.76 billion in the year earlier, Walgreens noted. Operating loss was $5.81 billion versus $13.21 billion in the year prior while adjusted operating income was $1.38 billion versus $1.59 billion.
In announcing the financial results for the quarter, Walgreens CEO Tim Wentworth said, “Second quarter results reflect disciplined cost management and improvement in U.S. Healthcare, which were partially offset by weaker front-end results in U.S. Retail Pharmacy, while significant legal settlements resulted in continued negative free cash flow. We remain in the early stages of our turnaround plan and continue to expect that meaningful value creation will take time, enhanced focus and balancing future cash needs with necessary investments to navigate a changing pharmacy and retail landscape.”
