January 8, 2023

Here’s a quick summary of Walgreens (WBA) earnings. Top 10 insights summarized for you:

See the full post here for discussion and questions: https://www.skool.com/invest-retire-community-1699/top-10-insights-from-walgreens-wba-q1-2023-earnings

  1. First quarter loss per share was $4.31 compared to EPS of $4.13 in the year-ago quarter, due to a $6.5 billion pre-tax charge related to opioid litigation settlements and other matters. [Negative]
  2. First quarter sales decreased 1.5% year-over-year to $33.4 billion, with a 3.2% increase on a constant currency basis after adjusting for the negative impact of AllianceRx Walgreens and the positive contribution of U.S. Healthcare M&A.
  3. Walgreens invested $3.5 billion in the acquisition of VillageMD and Summit Health, which closed on January 3, 2023, and is expected to accelerate U.S. Healthcare segment sales and path to profitability. [Positive]
  4. The company sold 19.2 million shares of AmerisourceBergen common stock in November and December, generating after-tax cash proceeds of $3 billion.
  5. Full-year sales guidance has been raised to $133.5 billion to $137.5 billion, reflecting the Summit Health acquisition, refreshed currency rates, and strong first quarter sales. [Positive]
  6. U.S. Healthcare targets have been raised, with a goal of $14.5 billion to $16.0 billion in sales by fiscal year 2025, up from the previous goal of $11.0 billion to $12.0 billion. The segment is also expected to be profitable by the end of fiscal year 2023. [Positive]
  7. Walgreens expects to achieve low-teens adjusted EPS growth in fiscal year 2025 and beyond. [Positive]
  8. Operating loss in the first quarter was $6.2 billion, due to the $6.5 billion pre-tax charge for opioid-related claims and litigation. Adjusted operating income was $1.0 billion, a decrease of 42.2% on a constant currency basis.
  9. Net loss in the first quarter was $5.6 billion, or $4.31 per share, compared to net income of $3.5 billion, or $4.13 per share, in the year-ago quarter.
  10. Walgreens is maintaining its full-year adjusted EPS guidance of $4.45 to $4.65, with strong core business growth offset by lapping fiscal year 2022 COVID-19 execution and currency headwinds. [Positive]

Link to the full earnings

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Eric Seto

Eric Seto is an investor with over 10 years of experience. He travelled around the world to help with auditing, accounting, purchase and sale of companies.

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