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Walgreens Q1 FY25 Earnings Beat Expectations with Adj EPS $0.51 and Revenue $39.46B, Stock Surges 17%

Jan 10, 2025, 12:28 PM

Walgreens Boots Alliance Inc. reported its fiscal 2025 first-quarter earnings, surpassing Wall Street's expectations. The company announced an adjusted earnings per share of $0.51, beating the estimate of $0.37, and revenue of $39.46 billion, exceeding the expected $37.28 billion. This performance led to a significant pre-market surge in Walgreens' stock, with shares jumping as much as 17%. Despite a net loss of $265 million for the quarter, primarily due to higher operating losses from a multiyear plan to close underperforming stores, Walgreens maintained its fiscal 2025 adjusted EPS guidance of $1.40 to $1.80. The company's sales grew across all business segments, with U.S. retail pharmacy sales reaching $30.87 billion, up 6.6% year-over-year, U.S. healthcare sales at $2.17 billion, up 12.5% year-over-year, and international sales at $6.43 billion, up 10.2% year-over-year. Adjusted operating income was reported at $593 million, down 13.69% year-over-year. Walgreens also confirmed that the sale process for Village Medical is underway, indicating efforts to streamline its operations amidst a challenging market environment. Over the past 12 months, Walgreens' stock has dropped nearly 63%, with its valuation now below $8 billion, making it the 10th smallest company in the S&P 500 by market value.