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DEERFIELD, Ill. - Walgreens Boots Alliance (NASDAQ:WBA) reported better-than-expected second quarter results on Tuesday, as the pharmacy retailer topped analyst estimates for both earnings and revenue.
Walgreens shares edged up 1.96% in pre-market trading following the earnings release
The company posted adjusted earnings per share of $0.63, exceeding the consensus forecast of $0.53. Revenue came in at $38.6 billion, surpassing expectations of $38 billion and representing a 4.1% YoY increase.
Walgreens saw solid growth in its U.S. Retail Pharmacy segment, with sales rising 5.3% to $30.4 billion. Comparable pharmacy sales increased 12.2%, benefiting from higher branded drug inflation and prescription volume growth.
However, the company's retail business faced headwinds, with comparable retail sales declining 2.8% due to lower sales in discretionary categories.
"Second quarter results reflect disciplined cost management and improvement in U.S. Healthcare, which were partially offset by weaker front-end results in U.S. Retail Pharmacy," said CEO Tim Wentworth.
The company withdrew its fiscal 2025 guidance due to the pending acquisition by Sycamore Partners, announced on March 6. The $6.5 billion deal is expected to close in Q4 2025, taking Walgreens private.
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