NASDAQ$WBA

Walgreens Boots Alliance Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Walgreens' third quarter 2021 results exceeded expectations, with the company raising its full-year guidance.

Walgreens Boots Alliance reported a strong third quarter, exceeding expectations with sales increasing by 12.1% to $34.0 billion and adjusted EPS growing by 83.4% to $1.51. The company raised its full-year guidance to around 10% growth in constant currency adjusted EPS from continuing operations.

  • Total sales increased 12.1 percent to $34.0 billion.
  • Total adjusted EPS increased 83.4 percent to $1.51.
  • The company raised guidance to around 10 percent growth in constant currency adjusted EPS from continuing operations.
  • Walgreens has administered more than 25 million COVID-19 vaccinations to date.

Headline financials

Total Revenue

$34B

Previous: $34.6B-1.7%
EPS (adj)

$1.38

Previous: $0.83+66.3%
Capital Expenditures

$309M

Previous: $257M+20.2%
Free Cash Flow

$1.4B

Previous: $657M+113.1%
Net Income

$1.2B

Previous: -$1.71B+170.3%
Operating Income

$1.1B

Previous: -$1.6B+168.8%
Gross Profit

$7.15B

Previous: $5.96B+20.1%
Cash & Equivalents

$1.35B

Previous: $768M+75.1%
Total Assets

$91.9B

Previous: $86.4B+6.3%
Stock-Based Comp

$50M

Previous: $34M+47.1%

Revenue & EPS history

Walgreens · Revenue · Quarterly

$34B

Q3 2021-1.7%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
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 raised fiscal 2021 guidance from mid-to-high single digit growth to around 10 percent growth in constant currency adjusted EPS from continuing operations. The revised guidance reflects strong results in the third quarter and greater clarity on the impact of COVID-19 vaccinations.

Tailwinds

  • Strong results in the third quarter
  • Greater clarity on the impact of COVID-19 vaccinations
  • Company raised fiscal 2021 guidance to around 10 percent growth in constant currency adjusted EPS from continuing operations.
  • Mass personalization boosted Walgreens retail sales by 100 basis points in the third quarter.
  • The company is on track to deliver in excess of $2 billion in annual cost savings by fiscal 2022.

Headwinds

  • Challenges lie ahead
  • COVID-19 related costs
  • Higher growth investments
  • Adverse impacts from the store optimization programs
  • Travel locations in airports and train stations continued to face challenges.

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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