LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free earnings report on Walgreens Boots Alliance, Inc. (NASDAQ: WBA) ("Walgreens"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WBA. The Company reported its first quarter fiscal 2018 operating and financial results on January 04, 2018. The largest US drugstore chain outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Walgreens Boots Alliance most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended November 30, 2017, Walgreens' sales totaled $30.74 billion, reflecting an increase of 7.9% compared to $28.50 billion in Q1 FY17. The Company's revenue numbers beat analysts' estimates of $30.33 billion.
During Q1 FY18, Walgreens' GAAP operating income totaled $1.32 billion, reflecting a drop of 8.6% compared to $1.45 billion in Q1 FY17, due to a loss from the Company's equity earnings in AmerisourceBergen. The Company's adjusted operating income was $1.8 billion in the reported quarter, up 4.8% on a y-o-y basis.
For Q1 FY18, GAAP net earnings fell 22.1% to $821 million compared to $1.05 billion in Q1 FY17, while GAAP diluted net earnings per share decreased 16.5% to $0.81 compared to $0.97 in the year earlier same quarter. The drops in the Company's GAAP net earnings and GAAP net earnings per share were primarily due to the impairment of Walgreens' equity method investment in Guangzhou Pharma. Furthermore, these decreases reflected loss from the Company's equity earnings in AmerisourceBergen and benefits from the UK tax rate reduction recorded in the year earlier comparable quarter.
During Q1 FY18, Walgreens' adjusted net earnings advanced 7.8% to $1.3 billion on a y-o-y basis, and adjusted diluted net earnings per share jumped 16.4% to $1.28 for the reported quarter, and was ahead of Wall Street's estimates of $1.27 per share.
Business Division Results
During Q1 FY18, Walgreens' Retail Pharmacy USA segment reported sales of $22.5 billion, up 8.9% on a y-o-y basis. Sales in comparable stores increased 4.7% compared to the year ago corresponding period. Pharmacy sales, which accounted for 72.4% of the segment's sales in the reported quarter, increased 14.1% on a y-o-y basis, primarily due to higher prescription volumes, including mail and central specialty following the formation of AllianceRx Walgreens Prime. The segment filled 260.2 million prescriptions adjusted to 30-day equivalents in Q1 FY18, reflecting an increase of 9.5% on a y-o-y basis. Prescriptions filled in comparable stores increased 8.9% compared to the year earlier same quarter, primarily due to Medicare Part D growth and volume growth from strategic pharmacy partnerships.
For Q1 FY18, the Retail Pharmacy USA segment's GAAP gross profit grew 3.0% to $5.60 billion on a y-o-y basis, and adjusted gross profit increased 3.7% to $5.70 billion. The segment's GAAP operating income gained 1.9% to $1.13 billion on a y-o-y basis, and adjusted operating income jumped 6.8% to $1.38 billion in Q1 FY18.
During Q1 FY18, Walgreens' Retail Pharmacy International segment generated sales of $3.1 billion, reflecting a growth of 4.1% on a y-o-y basis, primarily due to currency translation. On a constant currency basis, the segment's comparable store sales decreased 0.7%, while comparable pharmacy sales decreased 0.1%.
For Q1 FY18, the Retail Pharmacy International segment's GAAP gross profit grew 4.2% to $1.22 billion on a y-o-y basis, due to currency translation. On a constant currency basis, adjusted gross profit decreased 0.8%. The segment's GAAP operating income advanced 1.1% to $184 million, while adjusted operating income dropped 1.4% to $210 million in the reported quarter.
During Q1 FY18, Walgreens' Pharmaceutical Wholesale segment had sales of $5.7 billion, up 5.6% on a y-o-y basis. On a constant currency basis, the segment's comparable sales increased 4.5%.
For Q1 FY18, the Pharmaceutical Wholesale segment's GAAP operating income was $14 million, which included a loss of $112 million from the Company's equity earnings in AmerisourceBergen, compared to $160 million in Q1 FY17, which included a gain of $17 million from the Company's equity earnings in AmerisourceBergen. The segment's adjusted operating income was unchanged at $224 million, but was up 0.4% on a constant currency basis.
Cash Matters
During Q1 FY18, Walgreens' GAAP net cash provided by operating activities was $961 million, and free cash flow was $583 million. During the reported quarter, the Company completed its $5 billion share repurchase program announced in June 2017 and the $1 billion expansion of that program announced in October 2017.
Stock Performance Snapshot
January 16, 2018 - At Tuesday's closing bell, Walgreens Boots Alliance's stock marginally declined 0.05%, ending the trading session at 76.03.
Volume traded for the day: 4.69 million shares.
Stock performance in the last month – up 6.01%; previous three-month period – up 12.54%; and year-to-date – up 4.70%
After yesterday's close, Walgreens Boots Alliance's market cap was at $73.93 billion.
Price to Earnings (P/E) ratio was at 21.00.
The stock has a dividend yield of 2.10%.
The stock is part of the Services sector, categorized under the Drug Stores industry.
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