Walgreens Boots Alliance (WBA) FY2Q17 Results: WBA Misses on EPS and Revenues, Though Maintains FY Guidance

Executive Summary

• Walgreens Boots Alliance reported FY2Q17 EPS of $1.36 versus expectations of $1.37.
• Total revenues were $29.45 billion, below consensus of $30.18 billion. In the US, revenues were $21.81 billion, below expectations of $22.00 billion, and comps were up 2.4%, better than consensus of 2.2%.
• Management reaffirmed its full-year EPS guidance of $4.90–$5.08; consensus is $5.00. As previously disclosed, the company no longer expects any material accretion from Rite Aid in fiscal 2017.