Maria Schrater

Walgreens (WBA) is higher in the premarket after beating estimates on its 2Q report, with earnings per share of $1.20 and revenue of $37.05 billion. The company also narrowed its EPS guidance for the year to $3.20-$3.35 from $3.20-$3.50, but that still comfortably compares against the Street expectations of around $3.24 per share.

CEO Tim Wentworth said that despite the “challenging retail environment,” Walgreens still expects to achieve $1 billion in cost savings in 2024. The chain saw growth across all segments this quarter, with U.S. Retail Pharmacy comparable sales up 4.8% and Boots U.K. Pharmacy comparable sales up 1.7%. However, splitting retail and pharmacy apart in the U.S., Retail comparable sales fell 4.3% year-over-year – Walgreens cites the overall environment, along with a weaker respiratory season.

Looking at the stock, shares are down almost 40% in the last year, and 20% this year alone. If Walgreens can achieve its cost savings, and perhaps sees a strong pharmacy boost from the many Ozempic-like drugs coming to market, could it see a rebound?

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