Walgreens beats earnings expectations after omicron-fueled demand for tests and boosters lifted sales

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A person enters a Walgreens store in San Francisco, California, U.S., on Tuesday, April 13, 2021.
David Paul Morris | Bloomberg | Getty Images

Walgreens Boots Alliance on Thursday announced fiscal second-quarter earnings that topped analysts’ expectations, after the omicron variant of Covid-19 intensified demand for booster shots and tests during the winter months.

The drugstore chain reiterated its outlook for the year. It has said that adjusted earnings per share will grow in the low single digits.

Shares rose about 2%in premarket trading.

Here’s what Walgreens reported compared with what analysts were expecting for the second quarter ended Feb. 28, based on Refinitiv data:

  • Earnings per share: $1.59 adjusted vs. $1.40 expected
  • Revenue: $33.76 billion vs. $33.4 billion expected

In the quarter, net income fell to $883 million, or $1.02 per share, from $1.03 billion, or $1.19 per share, in the year-ago period.

Excluding items, the company earned $1.59 per share, exceedingthe $1.40 expected by analysts surveyed by Refinitiv.

Sales fell to $33.76 billion from $32.78 billion a year earlier, but surpassed the $33.4 billion that analysts expected.

As of Wednesday’s close, Walgreens shares are down 9% so far this year. Shares closed Wednesday at $47.46, bringing the company’s market value to $40.97 billion.

This story is developing. Please check back for updates.

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