Walgreens Boots Alliance Inc · Q1 2024 earnings

Briefing

Walgreens Q1 2024 results were reported, aligning with expectations amidst a challenging environment.

Walgreens Boots Alliance reported a 10.0% increase in sales to $36.7 billion, but experienced a net loss of $67 million and a decrease in adjusted EPS to $0.66. The company is maintaining its fiscal 2024 adjusted EPS guidance of $3.20 to $3.50.

• First quarter loss per share was $0.08, compared to a loss per share of $4.31 in the year-ago quarter, which included a $278 million after-tax charge.
• Adjusted EPS decreased 43.1 percent to $0.66, or 43.7 percent on a constant currency basis, due to challenging retail market trends in the U.S. and a higher tax rate.
• First quarter sales increased 10.0 percent year-over-year to $36.7 billion, or 8.7 percent on a constant currency basis.
• The company announced a 48 percent reduction in quarterly dividend payment to $0.25 per share.

Headline financials

Revenue & EPS history

Walgreens is maintaining its fiscal 2024 adjusted EPS guidance of $3.20 to $3.50, with underlying earnings growth more than offset by lower sale and leaseback contribution, a higher tax rate, and lower COVID-19 contribution. They are also maintaining U.S. Healthcare adjusted EBITDA to be breakeven at the midpoint of the guidance range of ($50) million to $50 million.