Walgreens 3Q Earnings Slide After Opioid Deal, Fewer Vaccinations

By Dean Seal

Walgreens Boots Alliance Inc. said earnings fell more than 73% in its third quarter due to its payment of a $683 million opioid settlement with the state of Florida and the lapping of last year's peak in Covid-19 vaccinations.

The drugstore chain said earnings for the quarter ended May 31 were 33 cents a share, down from $1.38 a share in the same period a year ago. Net earnings attributable to the company were $289 million, compared with $1.2 billion last year.

Stripping out one-time items, adjusted earnings were 96 cents a share, 4 cents higher than analysts had expected, according to FactSet.

Sales fell to $32.6 billion from $34.03 billion a year earlier. Analysts surveyed by FactSet had been expecting $32.06 billion.

The Deerfield, Ill.-based company said the drop in its earnings also reflected its growth investments in Walgreens Health. It attributed the quarter's lower sales to revenue declines at AllianceRx Walgreens.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

June 30, 2022 07:48 ET (11:48 GMT)

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