Walgreens (WBA) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Walgreens Boots Alliance (WBA) reported revenue of $39.46 billion for the quarter ended November 2024, reflecting a year-over-year increase of 7.5% and a surprise of +6.41% over the Zacks Consensus Estimate of $37.08 billion [1] - The earnings per share (EPS) for the quarter was $0.51, down from $0.66 in the same quarter last year, with an EPS surprise of +37.84% compared to the consensus estimate of $0.37 [1] Revenue Performance - U.S. Retail Pharmacy revenues reached $30.87 billion, exceeding the average estimate of $29.18 billion, marking a year-over-year increase of +6.6% [4] - U.S. Healthcare revenues were reported at $2.17 billion, surpassing the average estimate of $2.04 billion, with a year-over-year growth of +12.5% [4] - International revenues amounted to $6.43 billion, exceeding the estimated $5.91 billion, representing a +10.2% change compared to the previous year [4] Adjusted Operating Income - Adjusted operating income for U.S. Retail Pharmacy was $441 million, significantly higher than the average estimate of $291.48 million [4] - Adjusted operating income for International operations was reported at $168 million, slightly below the estimated $169.54 million [4] - U.S. Healthcare adjusted operating income was $25 million, exceeding the average estimate of $6.45 million [4] - Corporate and Other adjusted operating income was reported at -$41 million, better than the estimated -$50 million [4] Stock Performance - Walgreens shares have returned -5.2% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]