Walgreens Boots Alliance (WBA) reported earnings on Thur 11 Oct 18 (b/o)

** charts before earnings **

 

** charts after earnings **

Walgreens Boots Alliance beats by $0.03, misses on revs; guides FY19 EPS in-line 

• Reports Q4 (Aug) earnings of $1.48 per share, $0.03 better than the S&P Capital IQ Consensus of $1.45; revenues rose 10.9% year/year to $33.44 bln vs the $33.86 bln S&P Capital IQ Consensus.
  • Retail Pharmacy USA had fourth quarter sales of $25.5 billion, +14.4% Y/Y.
    
    • Sales in comparable stores +0.3% Y/Y
    • Pharmacy sales, which accounted for 73.6 percent of the division's sales in the quarter, +16.7% Y/Y compared with the year-ago quarter, primarily due to higher prescription volume from the acquisition of Rite Aid stores and from central specialty.
      
      • Comparable pharmacy sales +1.3%, reflecting higher volume. Reimbursement pressure and generics had a negative impact on comparable pharmacy sales growth, partially offset by brand inflation.
    • Retail sales +8.3% Y/Y , reflecting the acquisition of Rite Aid stores.
      
      • Comparable retail sales were down 1.9 percent in the quarter, with declines in the consumables and general merchandise category and in the personal care category, partially offset by growth in the health and wellness category and in the beauty category.
  • Retail Pharmacy International had fourth quarter sales of $2.9 billion, a decrease of 1.9 percent from the year-ago quarter. Sales decreased 2.7 percent on a constant currency basis.
    
    • Comparable pharmacy sales decreased 3.4 percent on a constant currency basis, primarily due to lower prescription volume and a decline in UK pharmacy funding.
• Co issues in-line guidance for FY19, sees EPS growth of 7-12% (implies EPS of $6.40-6.70) vs. $6.42 S&P Capital IQ Consensus.