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Walgreens’s EPS to Rise 11% in Q4 2018

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Dec. 4 2020, Updated 10:53 a.m. ET

Walgreens’s earnings to jump 11% in the fourth quarter

Wall Street expects a 10.7% YoY (year-over-year) jump in Walgreens Boots Alliance’s (WBA) EPS to $1.45 during the fourth quarter of fiscal 2018. The pharmacy giant hasn’t missed analysts’ earnings expectations for the last 16 consecutive quarters.

For fiscal 2018, the company’s EPS are expected to rise ~17% YoY to $5.98. Analysts’ expectations are in line with the midpoint of management’s guidance range of $5.90–$6.05 for the year. The company has raised its fiscal 2018 EPS guidance during all three quarters of fiscal 2018.

Walgreens’s earnings rose 11% to $5.10 in fiscal 2017 driven by cost-control initiatives and partnerships with pharmacy benefit managers and insurance companies.

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How have its competitors performed?

Competitor CVS Health (CVS), which reported its quarterly results in early August, delivered its tenth consecutive earnings beat. Its adjusted diluted EPS rose 27% YoY to $1.69, beating analysts’ consensus estimate by $0.08.

Rite Aid (RAD) reported adjusted EPS of -$0.01 when it reported its fiscal 2018 second-quarter results on September 27.

Discussing Walgreens’s year-to-date profitability

Walgreens recorded a 4.6% YoY increase in its adjusted operating income to $5.9 billion during the first nine months of 2018. On a constant currency basis, its operating income was up 3.8% YoY mainly driven by an increase in its Retail Pharmacy USA segment’s operating income.

The Retail Pharmacy USA segment posted a 2% rise in operating income during the third quarter of fiscal 2018 after reporting improvements of 6.8% and 6.3%, respectively, during the first and second quarters.

Read the next article to learn about Walgreens’s recent efforts to thwart its competition.

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