Walgreens Boots Alliance slashes guidance as profits retreat

June 27, 2023 09:47 PM AEST | By Invezz

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Walgreens Boots Alliance slashes guidance as profits retreat — Image source: Invezz

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Walgreens Boots Alliance (NASDAQ: WBA), the second-biggest retail pharmacy company in the US, published mixed results on Tuesday. Its revenue came in at over $35.42 billion, representing a 8.7% year-on-year growth. This revenue was about $1.5 billion higher than what analysts were expecting.

The company’s income included $1.9 billion that came from its monetization of its AmerisourceBergen stake. Its earnings per share (EPS) came in at $0.14, which was lower than the $0.33 it made in the same quarter in 2022. Net earnings came in at $118 million, down from $289 million a year ago.

Walgreens also downgraded its forward results. It expects its EPS to be between $4 and $4.05 from the previous $4.45 and $4.65. This decline is mostly because of lower Covid-19 contribution and weaker consumer spending. In a statement, the CEO said:

“Our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty, while still demonstrating clear drivers of a return to operating growth next fiscal year. We are raising our cost savings program target to $4.1 billion.”

Walgreens has consistently underperformed CVS Health. Its stock has dropped by more than 5.74% in the past decade while CVS Health has jumped by over 54%. It has plunged by 42% in the past five years compared to CVS 15.30%.

Walgreens stock price plunged by over 6% in the pre-market session.

The post Walgreens Boots Alliance slashes guidance as profits retreat appeared first on Invezz.

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