Walgreens tops estimates as the embattled pharmacy chain sees a pickup in US pharmacy sales
Shares of Walgreens jumped nearly 3% on Tuesday after the troubled pharmacy giant managed to top Wall Street's Q2 estimates. Walgreens’ earnings per share came in at $0.63, well ahead of FactSet estimates of $0.53.
Revenue was also in line with expectations, reaching $38.59 billion. Sales topped 4%, thanks to a pickup in demand at its US retail pharmacy chains and international businesses. Walgreens also slashed net losses nearly in half to $2.8 billion, down from $5.91 billion in the same quarter last year.
Despite the latest beat, Walgreens’ shares have plummeted recently as the company struggles to compete with rivals like CVS and Amazon. Last month, the beleaguered pharmacy chain agreed to be sold to private equity firm Sycamore for $10 billion in a deal that’s set to close by Q4 this year.
Walgreens shares are down 44% over the past year.
Revenue was also in line with expectations, reaching $38.59 billion. Sales topped 4%, thanks to a pickup in demand at its US retail pharmacy chains and international businesses. Walgreens also slashed net losses nearly in half to $2.8 billion, down from $5.91 billion in the same quarter last year.
Despite the latest beat, Walgreens’ shares have plummeted recently as the company struggles to compete with rivals like CVS and Amazon. Last month, the beleaguered pharmacy chain agreed to be sold to private equity firm Sycamore for $10 billion in a deal that’s set to close by Q4 this year.
Walgreens shares are down 44% over the past year.
