Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is scheduled to announce its second-quarter fiscal 2024 results on March 28, before the market opens.

In the first quarter of fiscal 2024, Walgreens exceeded earnings estimates by 4.8%. The company has surpassed the Consensus Estimate for earnings in two of the last four quarters, with an average negative surprise of 0.77%.

Let’s take a look at what investors can expect from Walgreens’ upcoming earnings report.

Factors to Consider

Walgreens is expected to have benefited from the successful execution of its growth strategies in the United States and international markets. The company’s network of micro fulfillment centers has helped stabilize staffing and pharmacy hours, reduce workflow pain points, and increase capacity. Walgreens is also piloting a virtual pharmacy to redefine connected care, increase patient access, enhance workplace flexibility, and extend its pharmacist reach. These initiatives are likely to have positively impacted the company’s top line in the second quarter.

During the first quarter of fiscal 2024, Walgreens partnered with academia, particularly key schools of pharmacy, to explore ways to attract, recruit, and create a dynamic workplace for the next generation of pharmacists. This initiative is expected to have further benefited the company’s top line in the second quarter.

Walgreens has also been expanding its services and supporting patients and partners by establishing assets in a capital-efficient way. The company partnered with pharmaceutical companies to drive greater patient diversity in clinical research. These developments are likely to have contributed to the company’s growth in the second quarter.

In addition, recent partnerships and initiatives, such as the distribution of Tarsus Pharmaceuticals-manufactured XDEMVY (lotilaner ophthalmic solution) 0.25% and the launch of the Rx Savings Finder tool to help customers save money on prescription medications, are expected to have boosted the company’s revenues in the second quarter.

United States Performance

Walgreens is expected to have seen growth in its U.S. retail pharmacy business, driven by an increase in script volume. The company’s engagement with payers and partners for clinical quality initiatives, as well as the performance of its vaccines portfolio, are likely to have contributed to its performance in the second quarter.

The company’s retail business in the United States witnessed impressive momentum through digital and omnichannel growth, driven by the myWalgreens loyalty program, owned brand innovation, and other profit streams. These trends are expected to have continued in the second quarter.

International Performance

Walgreens’ international business, particularly in Boots U.K. and the German wholesale business, is expected to have registered strong growth in the second quarter. The company’s comp retail sales and market share in the Boots U.K. market are likely to have increased, driven by growth in beauty and health and wellness categories.

Earnings Outlook

For the second quarter of 2024, the Consensus Estimate for total revenues is $36.48 billion, indicating a 4.7% increase from the prior-year quarter. The consensus estimate for earnings is 82 cents, representing a 29.3% decrease year over year

In conclusion, while Walgreens is expected to have faced some challenges in the second quarter, such as profit-taking and macroeconomic factors, the company’s strong growth initiatives and partnerships are expected to have driven positive results. Investors will be closely watching the company’s earnings report for insights into its performance and outlook for the future.

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