Walgreens Earnings: What To Look For From WBA

Pharmacy chain Walgreens Boots Alliance (NASDAQ:WBA) will be reporting results tomorrow before market open. Here’s what to look for.

Walgreens beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $39.46 billion, up 7.5% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Walgreens a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Walgreens’s revenue to grow 1.9% year on year to $37.76 billion, slowing from the 6.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Walgreens has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.7% on average.

Looking at Walgreens’s peers in the consumer retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Costco delivered year-on-year revenue growth of 9%, beating analysts’ expectations by 1.1%, and AutoZone reported revenues up 2.4%, falling short of estimates by 0.8%. Costco traded down 6.2% following the results while AutoZone was up 2.6%.

Read our full analysis of Costco’s results here and AutoZone’s results here.

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