Walgreens Boots Alliance Q4 Loss Widens; Adjusted Profit, Sales Beat View; Stock Up In Pre-Market

(RTTNews) - Walgreens Boots Alliance, Inc. (WBA), an integrated healthcare, pharmacy and retailing company, Tuesday reported a steep loss for the fourth quarter, primarily due to one-off expenses. On an adjusted basis, it posted profit, better than the Street expectations. The company's shares were up more than 5 percent in pre-market.

Walgreens reported a loss of $3.005 billion or $3.48 per share for the fourth quarter, significantly higher than $180 million or $0.21 per share loss in the same quarter a year ago. The increase in loss was primarily driven by a non-cash goodwill impairment charge related to CareCentrix, a non-cash charge for valuation allowance on deferred tax assets, and a non-cash impairment charge related to equity investment in China.

Excluding one-time items, the company posted earnings of $340 million or $0.39 per share, that beat the analysts average estimate of $0.36 per share. Analysts' estimates typically exclude special items.

Operating loss was $978 million, down from $450 million loss in the prior year. On an adjusted basis, operating income was $424 million.

Sales for the quarter, however, increased 6 percent to $37.547 billion from $35.422 billion in the previous year. The consensus estimate was for $35.75 billion.

For fiscal 2025, Walgreens expects adjusted EPS in the range of $1.40 to $1.80. Sales for the year are expected between $147 billion and $151 billion. Analysts expect the company to report earnings of $1.75 per share on sales of $147.28 billion for the year.

Walgreens stock had closed at $9.00, down 2.28 percent on Monday. It has traded in the range of $8.22 - $27.05 in the last 1 year.