Walgreens off to 'soft start' in new fiscal year

Boots is owned by US-based Walgreens Boots Alliance

The company added that Boots UK pharmacy sales had seen an increase of 0.9% in the first quarter of 2020, which covers September to November 2019, compared to the first quarter of 2019 (US financial years), which was driven by higher NHS reimbursement and increased sales of services, but was "partially offset by lower prescription volume". Shares of Walgreens, a Dow part, slid greater than 6%.

Walgreens earnings fell short of a MarketBeat-published analyst consensus estimate of $1.39 per diluted share for the first quarter.

Nothing in the company's first quarter numbers suggests Walgreens is gaining momentum, said Neil Saunders, general manager of GlobalData Retail.

Walgreens Boots Alliance Inc. runs more than 18,750 stores, including almost 9,300 in the United States. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

The Retail Pharmacy USA segment had fourth-quarter sales of $26.1 billion, an increase of 1.6% year over year. Institutional investors and hedge funds own 60.38% of the company's stock. Simon Quick Advisors LLC increased its holdings in shares of Walgreens Boots Alliance by 79.0% during the 4th quarter.

Earnings adjusted for one-time items totaled $1.37 per share. Legacy Capital Partners Inc. now owns 12,639 shares of the pharmacy operator's stock worth $699,000 after purchasing an additional 195 shares during the period. Finally, Penserra Capital Management LLC acquired a new position in Walgreens Boots Alliance in the 3rd quarter valued at $985,000. The firm has a market cap of $49.58 billion, a PE ratio of 9.13, a PEG ratio of 1.44 and a beta of 0.90. Walgreens Boots Alliance had a return on equity of 21.99% and a net margin of 2.91%. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.40 per share. The firm's revenue for the quarter was up 1.6% on a year-over-year basis. Last year, shares were the worst performing member of the Dow Jones Industrial Average, falling 13.7%.

Walgreens Boots Alliance, Inc operates as a pharmacy-led health and wellbeing company. With costs related to the acquisition of Rite Aid stores and to a transformational cost management program excluded, adjusted operating income decreased 16.2% from the year-past period to $1.16 billion. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale.

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