Walgreens Boots Alliance Inc (NASDAQ:WBA) stock rallies 22.70% (As on January 10, 11:22:57 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY 25. Adjusted operating income was $593 million compared to adjusted operating income of $687 million in the year-ago quarter, reflecting lower U.S. retail sales and lapping prior year sale-leaseback gains, partly offset by cost savings initiatives and growth in the U.S. Healthcare segment. The U.S. Retail Pharmacy segment sales reached $30.9 billion, up 6.6%. Comparable sales increased 8.5%. Pharmacy sales increased by 10.4%, and comparable pharmacy sales increased by 12.7%, driven by higher branded drug inflation and prescription volume. Comparable prescriptions increased by 2.3%, and prescriptions excluding immunizations increased by 3.5% compared to a year ago. Total prescriptions filled in the quarter, including immunizations, increased 1.5% to 316.3 million. Retail sales decreased 6.2%, and comparable retail sales decreased 4.6% compared with the year-ago quarter, mirroring a weaker cough cold flu season and lower sales in discretionary categories. The U.S. Healthcare segment’s sales were $2.2 billion. VillageMD sales increased 9%, CareCentrix sales increased 16%, and Shields sales rose 30%.
WBA in the first quarter of FY 25 has reported the adjusted earnings per share of 51 cents, beating the analysts’ estimates for the adjusted earnings per share of 37 cents. The company had reported the adjusted revenue growth of 7.5 percent to $39.46 billion in the first quarter of FY 25, beating the analysts’ estimates for revenue of $37.28 billion. First quarter operating loss was $245 million compared to an operating loss of $39 million in the year-ago quarter. Retail Pharmacy segment, and both operating loss and adjusted operating income reflect lower U.S. retail sales and lapping prior year sale-leaseback gains, partly offset by cost savings initiatives and growth in the U.S. Healthcare segment.
Net loss in the first quarter was $265 million compared to a net loss of $67 million in the year-ago quarter, primarily driven by higher operating loss. Adjusted net earnings2 decreased 23.0 percent to $440 million, down 23.2 percent on a constant currency basis, reflecting lower adjusted operating income.
Expecting healthcare growth to offset declines in retail pharmacy, the company reiterated its fiscal 2025 adjusted EPS target of $1.40 to $1.80 versus the consensus of $1.52. The company expects growth in U.S. Healthcare and International offset by pressure in U.S. Retail Pharmacy largely driven by weaker retail front end performance.