Walgreens Boots Alliance, Inc released their third-quarter earnings report on Thursday, showing stronger-than expected results to confirm the group’s profit guidance for the full year. In fact, its comparable US pharmaceuticals sales actually beat Wall Street forecasts.
The group said their GAAP earnings for the past three months (the quarter ending in May) grew to $1.47 per share. This means that Walgreens share price grew nearly 9 percent during their fiscal third quarter than the same period from one year ago. Perhaps more importantly, this was also 4 cents more than what analysts had predicted.
After what turned out to be a difficult second quarter, Walgreens saw much progress being made over the next couple months, inching closing to many company goals. This all led to notable US comparable growth when compared against data from the first half of the year.
Walgreens also said that group revenues increased by 0.7 percent, to $34.6 billion. This also beat analyst estimates—though only slightly—of $34.334 billion. Overall, though, Walgreens said that US pharmaceutical sales rose more than 4 percent with comparable sales increasing by 6 percent. This is the company’s biggest revenue generator, with 290.7 million prescriptions filled this year ranks in 2 percent higher than the year before.
According to CEO Stefano Pessina, “We will continue our aggressive response to rapidly shifting trends, and have already seen improved US retail sales and prescription growth and are making good progress in implementing our Transformational Cost Management Program.”
All in all, he follows, this should give the company the confidence they need to echo fiscal 2019 guidance in 2020. Furthermore, the company echoed their full-year guidance for EPS growth, which is in the 7 to 12 percent range, compared with the 2018 fiscal year. In addition, Walgreens now also says they will continue to work towards more cost-cutting strategies and other progressive goals.
Finally, Walgreens now says shares are up more than 3 percent, after the release of the latest earnings report. This should put share value at more than $54, which is still not enough to make for the decline in value, on the year, which is down about 21 percent so far.