Walgreens Crushes Sales Forecast, But Deeper Retail Troubles Lurk Beneath

Walgreens Boots Alliance Inc (NASDAQ: WBA) on Thursday reported third-quarter sales of $38.99 billion, up 7.2% year over year (+6.9% on constant currency), beating the consensus of $36.84 billion, reflecting sales growth in the U.S. Retail Pharmacy and International segments.

Adjusted operating income was $558 million compared to $613 million in the year-ago quarter, reflecting higher incentive accruals, lower U.S. retail sales, and lower equity earnings in Cencora, partly offset by growth in U.S. Healthcare and cost savings within U.S. Retail Pharmacy.

Adjusted EPS was 38 cents, down from 63 cents a year ago, beating the consensus of 34 cents, according to data from Benzinga Pro.

CEO Tim Wentworth, said, "Third quarter results reflect continued improvement in our U.S. Healthcare segment and benefits from our cost savings initiatives, while we continued to see ...