Walgreens Boots Alliance Inc (NASDAQ:WBA, ETR:W8A) saw its shares surge 24% in Friday morning trading after reporting stronger-than-expected first-quarter earnings and maintaining an optimistic full-year forecast.
For Q1 FY25, Walgreens posted adjusted earnings per share (EPS) of $0.51, beating analysts' revised expectations of $0.37.
Revenue rose 7.5% year-over-year to $39.46 billion, surpassing the consensus estimate of $37.28 billion.
However, net income declined to $(265) million, from $(67) million a year earlier.
The company faced challenges in its US Retail Pharmacy segment, including weaker discretionary sales and reduced gains from sale-leaseback transactions. However, growth in US Healthcare and international operations, particularly in Boots UK and Germany, helped offset these pressures.
Adjusted operating income fell 13.7% to $593 million, and gross margin dropped to 17.18%.
Walgreens maintained its full-year FY25 adjusted EPS guidance of $1.40 to $1.80, driven by expansion in US Healthcare and international markets.