Will Walgreens' (WBA) Q2 Earnings Gain From Overall Growth?
Zacks Investment Research | Mar 25, 2018 09:40PM ET
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is slated to release second-quarter fiscal 2018 results before the market opens on Mar 28.
Last quarter, the company had delivered a positive earnings surprise of 0.79%. It is noteworthy that Walgreens Boots has outperformed the Zacks Consensus Estimate in three of the preceding four quarters with an average positive earnings surprise of 2.43%. Let’s take a look at how things are shaping up prior to this announcement.
Key Catalysts
Over the recent past, we have observed Walgreens Boots’ Retail Pharmacy USA division to witness comparable prescription growth and benefit from strength in retail prescription market. Several planned developments, early benefits of new pharmacy contracts as well as an increase in volume owing to previously announced pharmacy partnerships have been driving growth in this space over the past few quarters. Moreover, rising expenditure on prescription drugs and growing demand for specialty drugs have been strengthening the retail pharmacy market.
Meanwhile, during first-quarter fiscal 2018, the company exceeded 1 billion scripts on a 30-day adjusted and rolling annual basis for the first time, touching a new milestone.
Furthermore, the company’s efforts to boost its digital capabilities have started paying off. In this regard, more than 20% of the company’s retail refill scripts were initiated through digital channels with the Walgreens' mobile app, having been downloaded in excess of 50 million times since the launch.
We are also encouraged by the increase in sales at the Retail Pharmacy International segment. Furthermore, the company has been gaining on account of the company’s strategic tie-ups, which brought more patients to its U.S. pharmacies.
Walgreens Boots Alliance, Inc. Price and EPS Surprise
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