Will Walgreens (WBA) Q1 Earnings Gain From Overall Strength?
Zacks Investment Research | Dec 17, 2018 09:56PM ET
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is slated to release first-quarter and fiscal 2019 results on Dec 11, before the market opens.
In the last reported quarter, the company delivered a positive earnings surprise of 2.78%. Walgreens Boots has outperformed the Zacks Consensus Estimate in the last four quarters, the average positive earnings surprise being 4.82%.
Let’s take a look at how things are shaping up prior to this announcement.
Key Catalysts
Over the recent past, Walgreens Boots’ Retail Pharmacy USA division witnessed comparable prescription growth and benefited from a strong retail prescription market. Notably, revenues from this division accounted for more than 76.3% of total fourth-quarter fiscal 2018 revenues.
Also, Walgreens Boots' purchase of 1,932 stores, three distribution centers and related inventory from Rite Aid for a total transaction value of $4.375 billion has already started to prove beneficial for the company with respect to a number of aspects. In this regard, Pharmacy sales, which contributed around 73.6% to the division’s sales in the fourth quarter of fiscal 2018, increased 16.7% year over year. The upside was primarily led by increased prescription volume from the buyout of Rite Aid stores and central specialty.
Walgreens Boots Alliance, Inc. Price and EPS Surprise
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