Walgreens Beats Estimates, Drops Outlook as Sycamore Buyout Nears

Walgreens Boots Alliance posted fiscal third-quarter revenue of $39.0 billion, up 7 percent from a year earlier and roughly $2 billion above Wall Street expectations. Adjusted earnings per share came in at $0.38, topping analysts’ consensus of around $0.32. On a GAAP basis the company recorded a loss of $0.20 per share, reflecting prior-year asset-sale gains that did not recur and higher tax expense. Sales in the U.S. Retail Pharmacy division rose 7.8 percent to $30.7 billion, while the U.S. Healthcare unit generated $2.1 billion, in line with forecasts, as management cited continued improvement at VillageMD and Shields. Front-end retail sales remained weak, but cost-cutting helped offset softness. Chief Executive Officer Tim Wentworth said the turnaround plan "will require time and disciplined focus" as the company balances cash needs with investment in its evolving pharmacy and health-services operations. With a $6.7 billion buyout by Sycamore Partners expected to close later this year, Walgreens withdrew its fiscal-2025 guidance and skipped the customary earnings call, saying previously issued targets should no longer be relied upon. The company had already suspended forward guidance when the take-private agreement was announced in March. Walgreens shares rose in early trading on the profit beat.