NASDAQ$WBA

Walgreens Boots Alliance Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Walgreens reported a decrease in net earnings and maintained its full-year adjusted EPS guidance.

Walgreens Boots Alliance reported a 1.6% increase in sales to $34.3 billion, but experienced a 24.8% decrease in net earnings to $845 million and a 19.8% decrease in EPS to $0.95. The company maintained its guidance of roughly flat growth in fiscal 2020 adjusted EPS on a constant currency basis.

  • Sales increased 1.6 percent to $34.3 billion, up 2.3 percent on a constant currency basis.
  • Operating income decreased 27.6 percent to $1.0 billion; Adjusted operating income decreased 15.6 percent to $1.5 billion, down 15.4 percent on a constant currency basis.
  • EPS decreased 19.8 percent to $0.95; Adjusted EPS decreased 6.0 percent to $1.37, down 5.7 percent on a constant currency basis.
  • Net cash provided by operating activities was $1.1 billion, an increase of $601 million; Free cash flow was $674 million, an increase of $684 million.

Headline financials

Total Revenue

$34.3B

Previous: $33.8B+1.6%
EPS (adj)

$1.37

Previous: $1.46-6.2%
Capital Expenditures

$387M

Previous: $470M-17.7%
Net Income

$845M

Previous: $1.12B-24.8%
Operating Income

$1B

Previous: $1.4B-28.6%
Gross Profit

$7.26B

Previous: $7.64B-5.0%
Stock-Based Comp

$28M

Previous: $27M+3.7%

Revenue & EPS history

Walgreens · Revenue · Quarterly

$34.3B

Q1 2020+1.6%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Walgreens · $7.76B total across 2 segments · Q4 2023

  • International
    $5.78B
  • U.S. Healthcare
    $1.97B+217.0%

Forward guidance

The company maintained guidance of roughly flat growth in fiscal 2020 adjusted earnings per share at constant currency rates, with a range of plus or minus 3 percent.

Tailwinds

  • On track to deliver in excess of $1.8 billion in annual cost savings by fiscal 2022
  • WBA agreed to create German wholesale joint venture with McKesson
  • Walgreens and Kroger formed a group purchasing organization
  • Flagship No7 beauty brand saw sales growth in the mid teens in the U.S.
  • Jenny Craig health and weight loss management on track to locate in approximately 100 Walgreens by the end of January

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 16 quarterly earnings reports

Historical avg

-0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-1.9%

Avg return

30 days after

53%

33 / 62 earnings

Positive

+29.1%

Q1 2025

Best reaction

-22.7%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.4%+1.5%+2.7%
Q2 2025-1.1%+0.5%+4.1%
Q1 2025+29.1%+36.1%+10.0%
Q4 2024+23.0%+18.7%-2.0%
Q3 2024-22.7%-26.0%-24.5%
Q2 2024-7.0%-10.9%-15.7%
Q1 2024-2.2%-0.6%-11.4%
Q4 2023+2.9%+2.1%-7.3%
Q3 2023-7.9%-10.2%-3.0%
Q2 2023+3.7%+5.0%+6.6%
Q1 2023-2.3%-2.1%-1.1%
Q4 2022+4.1%+3.8%+29.4%
Q3 2022-5.7%-5.7%-2.9%
Q2 2022-7.6%-8.4%-10.6%
Q1 2022-0.3%+0.6%-10.0%
Q4 2021+3.5%+1.5%+4.8%
Q3 2021-8.4%
Q2 2021+3.3%
Q1 2021+5.1%
Q4 2020+4.2%
Q3 2020-5.1%
Q2 2020-5.4%
Q1 2020-7.8%
Q4 2019+1.5%
Q3 2019+4.4%
Q2 2019-13.6%
Q1 2019-8.2%
Q4 2018+1.6%
Q3 2018-9.4%
Q2 2018-0.7%
Q1 2018-3.4%
Q4 2017-0.3%
Q3 2017+1.6%
Q2 2017-1.0%
Q1 2017+0.1%
Q4 2016+5.7%
Q3 2016-3.6%
Q2 2016-3.0%
Q1 2016+1.8%
Q4 2015-11.9%
Q3 2015+8.4%
Q1 2014+4.9%
Q2 2015+4.9%
Q4 2013+4.9%
Q1 2015+3.2%
Q4 2014-0.9%
Q3 2014+0.6%
Q2 2014+1.0%
Q3 2013-1.0%
Q2 2013+0.4%
Q1 2013+1.6%
Q4 2012+1.4%
Q3 2012-3.2%
Q2 2012-1.9%
Q1 2012+4.1%
Q4 2011+0.4%
Q3 2011-0.9%
Q2 2011+1.8%
Q1 2010+2.5%
Q4 2010+1.8%
Q3 2010-0.1%
Q2 2009+0.5%

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