Walgreens Boots Alliance ( NASDAQ: WBA) reported better-than-expected fiscal third quarter earnings Thursday and raised its outlook for the year. Although shares rose 2.2% for a short period of time, they fell back down 6.7% as regular trading commenced, due to concerns that vaccine revenue will slow in the coming quarters.
The American pharmacy store chain believes it will experience a 10% growth in adjusted earnings per share in 2021, amid its increasing sales and ongoing Covid-19 shots. The company had originally estimated mid-to-high single digit growth. According to Walgreens, it has administered over 25 million covid vaccines and is now offering walk-in and same-day appointments.
Walgreens reported earnings of USD1.51 per share, compared to the anticipated USD1.17 a share. Revenue amounted to USD34.03 Billion, higher than analysts expected USD33.76 Billion. In the quarter, the company reported a net profit of USD1.20 Billion or USD1.38 per share, compared to the previous year’s net loss of USD1.71 Billion or USD1.95 per share.
“This quarter’s results demonstrate continued momentum, and while challenges lie ahead, we are in a strong position to grow and innovate our core retail and pharmacy businesses for the future,” said new CEO, Roz Brewer, in a press release.
The drugstore chain shared information on its strategic priorities on Thursday. Walgreens said it intends to become a neighborhood health destination upon opening up primary-care clinics with VillageMD within hundreds of its stores. Furthermore, it plans to use automation in order to allow pharmacists to focus on providing care and be available for customer questions.
Walgreens shares have risen approximately 32% throughout 2021 and has a current market value of USD45.48 Billion.