NASDAQ$WBA

Walgreens Boots Alliance Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Walgreens' first quarter results surpassed expectations with a focus on healthcare and omnichannel investments, despite a loss per share due to charges from equity earnings in AmerisourceBergen.

Walgreens Boots Alliance reported a 5.7% increase in sales to $36.3 billion for the first quarter of fiscal 2021. However, the company experienced a loss per share of $0.36, primarily due to a $1.73 per share charge from its equity earnings in AmerisourceBergen. Adjusted EPS decreased by 11.2% to $1.22. The company maintained its guidance of low single-digit growth in adjusted earnings per share for fiscal 2021.

  • Sales increased by 5.7 percent to $36.3 billion.
  • Loss per share was $0.36, impacted by a charge from AmerisourceBergen.
  • Adjusted EPS decreased 11.2 percent to $1.22.
  • Company maintained guidance of low single-digit growth in adjusted EPS for fiscal 2021.

Headline financials

Total Revenue

$36.3B

Previous: $34.3B+5.7%
EPS (adj)

$1.22

Previous: $1.37-10.9%
Capital Expenditures

$431M

Previous: $387M+11.4%
Free Cash Flow

$763M

No prior period
Net Income

-$308M

Previous: $845M-136.4%
Operating Income

-$440M

Previous: $1B-144.0%
Gross Profit

$7.14B

Previous: $7.26B-1.7%
Cash & Equivalents

$1.11B

No prior period
Total Assets

$89.2B

No prior period
Stock-Based Comp

$36M

Previous: $28M+28.6%

Revenue & EPS history

Walgreens · Revenue · Quarterly

$36.3B

Q1 2021+5.7%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Walgreens · $29.7B total across 2 segments · Q1 2021

  • U.S. Pharmacy
    $27.2B
  • International
    $2.57B

Forward guidance

The company maintained fiscal 2021 guidance of low single-digit growth in adjusted earnings per share at constant currency rates.

Tailwinds

  • The first quarter exceeded expectations, reflecting strength in Boots UK and Boots Opticians.
  • Company maintained guidance of low single-digit growth in adjusted earnings per share at constant currency rates.
  • Walgreens pharmacists are playing a key, expanded role in fighting the COVID-19 pandemic.
  • Walgreens launched myWalgreens, a complete reinvention of its customer loyalty program.
  • Boots.com significantly expanded capacity and sales doubled from the year-ago quarter, outperforming the market.

Headwinds

  • The second quarter is expected to see higher adverse impacts from COVID-19 (including the weaker cough, cold and flu season).
  • Opportunity from the distribution of vaccinations is likely to be offset by COVID-19 related lock-downs and restrictions.
  • Opportunity from the distribution of vaccinations is likely to be offset by increased growth investments.
  • COVID-19 continued to impact footfall, particularly in major high street, train station and airport stores.
  • Boots UK market share was lower in all categories except beauty, as the pandemic continued to impact heavily on buying habits and consumers temporarily shifted purchasing to one-stop grocery shopping.

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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