NASDAQ$WBA

Walgreens Boots Alliance Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Walgreens reported a mixed second quarter with sales growth offset by a net loss due to impairment charges, while adjusted EPS increased slightly.

Walgreens Boots Alliance (WBA) announced its fiscal 2024 second quarter results, revealing a 6.3% increase in sales to $37.1 billion, but a net loss of $5.9 billion due to a $5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill. Adjusted EPS increased by 3.4% to $1.20. The company narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35.

  • Sales increased 6.3% year-over-year to $37.1 billion, or 5.7% on a constant currency basis.
  • Loss per share was $6.85, compared to earnings per share of $0.81 in the year-ago quarter, impacted by a $5.8 billion after-tax non-cash impairment charge.
  • Adjusted EPS increased 3.4% to $1.20, or 2.8% on a constant currency basis.
  • Fiscal 2024 adjusted EPS guidance narrowed to $3.20 to $3.35.

Headline financials

Total Revenue

$37.1B

Previous: $34.9B+6.3%
EPS (adj)

$1.20

Previous: $1.16+3.4%
Prescriptions filled

305.3M

No prior period
Capital Expenditures

-$352M

Previous: $498M-170.7%
Net Income

-$5.91B

Previous: $703M-940.4%
Operating Income

-$13.2B

Previous: $200M-6685.5%
Gross Profit

$7.04B

Previous: $7.06B-0.2%
Stock-Based Comp

$48M

Previous: $71M-32.4%

Revenue & EPS history

Walgreens · Revenue · Quarterly

$37.1B

Q2 2024+6.3%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
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

Walgreens Boots Alliance narrowed its fiscal 2024 adjusted EPS guidance to $3.20 to $3.35, reflecting challenges in the retail environment, the early wind-down of the sale-leaseback program, and lower earnings due to Cencora share sales, offset by pharmacy services execution and a lower adjusted effective tax rate.

Tailwinds

  • Execution in pharmacy services is expected to offset some challenges.
  • A lower adjusted effective tax rate is anticipated.
  • U.S. Healthcare adjusted EBITDA is maintained to be breakeven at the midpoint of the guidance range.
  • Company confident in goal of achieving $1 billion in cost savings this year.
  • Team members are powering progress as we map growth opportunities.

Headwinds

  • Challenging retail environment in the U.S. is impacting performance.
  • Early wind-down of the sale-leaseback program is creating headwinds.
  • Lower earnings are expected due to Cencora share sales.
  • Operating cash flow was negatively impacted by payments related to legal matters.
  • Softer U.S. retail performance and lower sale-leaseback gains, partly offset by improved profitability in the U.S. Healthcare segment.

Historical earnings impact

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

Avg. return before/after earnings

Based on 16 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-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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