WBA - Walgreen misses Q3 expectations and disappoints on guidance
2024-06-27 07:11:06 ET
Walgreens Boots Alliance Inc (NASDAQ: WBA) trading down this morning after reporting weaker-than-expected financial results for its third quarter.
Shares of the healthcare giant are now down close to 50% for the year.
Walgreens stock sinks on disappointing guidance
Walgreens stock is in the red at writing also because its management lowered its guidance. The multinational now forecasts its adjusted per-share earnings to fall between $2.80 and $2.95 in fiscal 2024.
Analysts, in comparison, were at $3.20 per share. Tim Wentworth – the chief executive of Walgreens Boots Alliance said in a press release today:
We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins.
WBA saw its free cash flow improve sharply to $334 million in the third quarter. Wall Street currently has a consensus “hold” rating on Walgreens shares.
Notable figures in Walgreens Q3 earnings release
- Earned $334 million versus the year ago $118 million
- Per-share earnings also improved from 14 cents to 40 cents
- Adjusted EPS printed at 63 cents as per the earnings report
- Sales increased 2.6% year-over-year to $36.4 billion
- Consensus was 68 cents a share on $35.94 billion in revenue
Walgreens Boots Alliance also touted a decline in capital expenditures in its quarterly report. Its CEO Wentworth also said on Thursday:
We are focused on improving our core business: retail pharmacy, which is central to the future of healthcare. We are addressing critical issues with urgency and working to unlock opportunities for growth.
This is a developing story. Check back in a few minutes for more updates!
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