Walgreens Boots Alliance (NASDAQ:) saw its shares jump more than 5% in premarket trading Tuesday after the company reported better-than-expected results for the fiscal Q4 2024.
The retailer delivered fourth-quarter earnings per share (EPS) of $0.39, topping the analyst estimate of $0.36. Revenue stood at $37.55 billion, also above the consensus estimate of $35.75 billion.
The company’s international sales reached $5.97 billion, a 3.2% year-over-year increase, exceeding the projection of $5.84 billion.
U.S. Retail Pharmacy sales came in at $29.47 billion, up 6.5% year-over-year, beating the $27.48 billion estimate. Meanwhile, U.S. Healthcare sales totaled $2.11 billion, a 7.2% year-over-year rise, but slightly below the estimate of $2.15 billion.
The adjusted gross margin for the quarter was 16.9%, down from 18.6% the previous year, and below the estimated 17.6%.
Going forward, Walgreens Boots Alliance expects EPS for the fiscal 2025 to be in the range of $1.40 to $1.80, compared to the consensus estimate of $1.75. Revenue is anticipated to range between $147 billion and $151 billion, while analysts were looking for $145.6 billion.
The company projects adjusted operating income between $1.6 billion and $2.0 billion, in line with the estimate of $1.89 billion.
Walgreens also said that it plans to close 1,200 stores over the next three years as new CEO Tim Wentworth works to steer the struggling pharmacy chain towards recovery. The company has been impacted by weak consumer spending and lower drug reimbursement rates.
“This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” said Wentworth in a statement.
