Shares of Walgreens Boots Alliance (WBA) are down 15% after the retail pharmacy chain
reported earnings that missed Wall Street targets and lowered its forward guidance.
The company reported earnings per share (EPS) of $0.63 U.S., which missed consensus expectations that called for $0.68 U.S.
Revenue in what was the company’s fiscal third quarter totaled $36.40 billion U.S., which was ahead of forecasts of $35.94 billion U.S. Sales rose 2.6% from the same period a year ago.
In terms of guidance, management at Walgreens said they now expect full-year 2024 earnings of $2.80 U.S. to $2.95 U.S. per share.
The new guidance is down from a previous outlook that called for earnings of $3.20 U.S. to $3.35 U.S. a share.
Executives at the company said the lowered guidance reflects a “challenging environment” for pharmacies and consumers.
Walgreens did not provide a new revenue forecast for the fiscal year.
The latest financial results arrive as Walgreens cut costs amid weakening consumer demand. The company is in the midst of closing underperforming retail outlets.
Overall, Walgreens retail sales fell 4% in Q1 from a year earlier, while comparable retail sales declined 2.3%.
However, the company’s international segment, which operates more than 3,000 retail stores overseas, posted $5.73 billion U.S. in sales, up 2.8% from a year ago.
The company said sales from its British drugstore chain Boots grew 1.6% in the latest quarter. Walgreens has canceled previous plans to hold an initial public offering (IPO) for Boots.
Prior to today (June 27), Walgreens’ stock had declined 45% over the last 12 months and was trading at $15.66 U.S. per share.
