Walgreens Boots Alliance Inc. (Nasdaq: WBA) Surpasses Analysts' Expectations with a Strong First-Quarter Performance

Walgreens Boots Alliance Inc. (Nasdaq: WBA) delivered a remarkable first-quarter performance for the period ending November 30, 2024

Nasdaq-listed Walgreens Boots Alliance Inc. (Nasdaq: WBA) reported better-than-expected first-quarter earnings on Friday, thanks to a combination of cost-cutting measures and a boost from its U.S. health care segment. Walgreens’ stock soared as much as 28% in early Friday trading, reaching $11.77.

Walgreens battered investors with a loss per share for the first quarter that ended on November 30, 2024. Adjusted for one-time items, Walgreens earned 51 cents per share in Q1. Analysts, on average, had anticipated adjusted earnings of 38 cents per share for the recent quarter.

In the prior quarter (Q4), Walgreens had recorded adjusted earnings of 84 cents per share.

Walgreens Boots went past expectations on the revenue front as well with a 7% year-over-year increase that pushed sales to $39.5 billion in the first quarter. As per FactSet, analysts had прогнозировал продажи на уровне $38.6 billion for the recent quarter.

The U.S. health care segment noted a 7.4% organic sales growth in Q1, as reported earlier by the company. Walgreens also highlighted a ‘double-digit’ growth from its clinic services, partnerships, and digital health initiatives.

In a bid to execute on its strategic priorities for 2025, Walgreens closed the quarter with 5,440 retail pharmacies in the United States. The company also optimized its footprint by reducing the number of stores to 8,495, including 340 owned by Kroger Co. (NYSE: KR).

Walgreens now aims to close 1,200 retail stores in the United States, with 500 scheduled for closure in fiscal 2025 and the remaining closures spread out over the next three years.

Walgreens stock performed poorly in 2023 with a close to 40% annual decline. At the time of writing, the stock is valued at $40.1 billion and has a price to earnings ratio of 48.6