Walgreens Boots Alliance (NASDAQ:WBA) shares rose more than 3% on Thursday after the company exceeded expectations with its second-quarter adjusted earnings per share (EPS) of $1.20, surpassing the analyst prediction of $0.82 by $0.38. The company’s revenue hit $37.1 billion, beating the expected $35.9 billion and showing a 6.3% year-over-year growth.
Looking ahead to fiscal 2024, Walgreens adjusted its EPS forecast to range between $3.20 and $3.35, compared to the consensus estimate of $3.24. This revision accounts for challenges in the U.S. retail sector, an earlier conclusion to its sale-leaseback program, and decreased earnings from Cencora share sales, but is somewhat mitigated by strong performance in pharmacy services and a reduced adjusted effective tax rate.
Despite these changes, Walgreens is sticking to its U.S. Healthcare adjusted EBITDA prediction, aiming to break even within the forecasted range of negative $50 million to $50 million. The reported earnings beat and updated guidance indicate Walgreens’ careful yet positive strategy for tackling the fiscal year amidst a tough retail environment.