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Walgreens Boots Alliance (NASDAQ:WBA) released its first-quarter financial results, surpassing analyst expectations for revenue and adjusted earnings, despite reporting a net loss.
The company reported quarterly revenue of $39.46 billion, exceeding the $36.71 billion achieved in the same period last year and the $37.33 billion projected by analysts, according to Visible Alpha. However, Walgreens posted a net loss of $265 million, contrary to analyst forecasts for a modest profit. On an adjusted basis, the company recorded net income of $440 million, or $0.51 per share, outpacing consensus estimates of $329.34 million, or $0.38 per share.
Adjustments accounted for expenses related to store closures and fluctuations in investment valuations. Previously, Walgreens outlined plans to shut down 1,200 underperforming locations over the next three years, including 500 during the current fiscal year. The latest report did not specify how many closures occurred in the first quarter.
While our turnaround will require time, our initial progress strengthens confidence in a sustainable, pharmacy-focused operating model, said CEO Tim Wentworth.
The stock initially rose in pre-market trading to $10.51 but had fallen to $9.22 as of 9:09 a.m. ET.
This article first appeared on GuruFocus.