Walgreens (WBA) earnings Q1 2025

Walgreens on Friday reported fiscal first-quarter earnings and income that topped expectations, because it shutters shops and cuts different prices to steer itself out of a tough spot.

This is what Walgreens reported for the three-month interval ended Nov. 30 in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by LSEG:

• Earnings per share: 51 cents adjusted vs. 37 cents anticipated
• Income: $39.46 billion vs. $37.36 billion anticipated

Even after the large beats, Walgreens maintained its fiscal 2025 adjusted earnings steering of $1.40 to $1.80 per share. The corporate didn’t embody annual gross sales steering in its launch. In October, Walgreens stated it expects income for the fiscal 12 months of $147 billion to $151 billion. 

Shares jumped about 10% in premarket buying and selling.

The corporate capped off a rocky previous 12 months marked by pharmacy reimbursement stress, softer shopper spending and challenges associated to its push into main care, amongst different points. The outcomes come amid experiences that the corporate is in talks to promote itself to non-public fairness agency Sycamore Companions. 

Throughout the fiscal first quarter, Walgreens booked gross sales of $39.46 billion, up 7.5% from the identical interval a 12 months in the past, as its three enterprise segments grew. 

The corporate reported a internet lack of $265 million, or 31 cents per share, for the fiscal first quarter. It compares with a internet lack of $67 million, or 8 cents per share, for the year-earlier interval.

Walgreens stated the loss was primarily pushed by larger working losses, which mirror its multiyear plan to shut underperforming shops. That features 1,200 over the subsequent three years, with 500 in fiscal 2025 alone. 

Walgreens has round 8,500 retail pharmacy places throughout the U.S., based on its web site.

Excluding sure objects, adjusted earnings had been 51 cents per share for the quarter. 

The primary-quarter outcomes “mirror our disciplined execution in opposition to our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling working prices, enhancing money move and persevering with to handle reimbursement fashions,” Walgreens CEO Tim Wentworth stated in a launch. 

He added that “whereas our turnaround will take time, our early progress reinforces our perception in a sustainable, retail pharmacy-led working Mannequin.”