Walgreens says its Q4 and fiscal year results 'exceeded expectations'

Walgreens Boots Alliance Inc. reported fourth-quarter and fiscal year earnings Thursday that officials said "exceeded expectations."

The Deerfield pharmacy retailing giant (Nasdaq: WBA) reported adjusted fourth-quarter earnings of $1.17 per share, up 29.5% from last year's 91 cents per share and above expectations of analysts polled by Thomson Reuters First Call, who expected earnings of $1.02 per share. Fourth quarter sales rose 12.8% to $34.3 billion from $30.4 billion a year earlier and above analysts' expectations of $33.3 billion.

“Our fourth quarter and fiscal year results exceeded expectations, driven by strong performance in our core business. Comparable U.S. pharmacy and retail sales both saw robust growth and recovery continued in our United Kingdom business as Covid-19 restrictions eased in the quarter," said CEO Roz Brewer in a statement.

For fiscal 2021, adjusted earnings per share increased 14.6% to $4.91 from $4.28 a year earlier. Fiscal 2021 revenue rose 8.6% to $132.5 billion from $122 billion a year earlier. Analysts were expecting fiscal year earnings of $4.76 per share and revenue of $131.47 billion.

Walgreens said it surpassed its Covid-19 vaccination goal by providing 13.5 million vaccinations in the quarter and 34.6 million in fiscal 2021.

Analysts were impressed with Walgreens' performance.

"This was a strong quarter for Walgreens as the company benefited from Covid-19-driven demand. Online and same-store sales rose 8.1% year-over-year, driven by sales of health and wellness products as consumers bought more at-home Covid-19 tests and over-the-counter medication," said John Boylan, consumer staples analyst for Edward Jones,in an earnings analysis, who added he rates Walgreens stock as a "hold," because of "competition from online retailers for everyday items and pharmacy services."

Also on Thursday,Walgreens agreed to invest a total of $5.2 billion in VillageMD, a Chicago company that operates primary care clinics and telehealth services. The new investment increases Walgreens' stake in VillageMD from 30% to 63%.

Last month,Walgreens' Walgreen Co. unit invested about $970 million to become majority owner of Shields, a specialty pharmacy care company. It will now own about 71% of the Stoughton, Mass.-based company.