Walgreens stock down despite market-beating Q3 results
- Walgreens Boots Alliance reports market-beating results for its fiscal third quarter.
- Shares are down more than 3.0% on a significant year-over-year hit to Q3 results.
- Walgreens sees a low-single-digits percentage growth in full-year adjusted EPS.
Walgreens Boots Alliance Inc (NASDAQ: WBA) on Thursday said lower demand for COVID vaccine and tests resulted in a significant year-on-year hit to its third-quarter results. Shares are down more than 3.0% this morning.
Walgreens Q3 results
- Net income printed at $289 million versus the year-ago figure of $1.197 billion
- Per-share earnings of 33 cents were massively below $1.38 in Q3 of previous year
- On an adjusted basis, EPS stood at 96 cents in the recent financial quarter
- Sales slid 5.0% YoY on $32.6 billion, as per the earnings press release
- FactSet consensus was for 92 cents of adjusted EPS on $32.06 billion in sales
- Excluding tobacco, comparable retail sales in the U.S. went up 2.40%
Walgreens administered 3.9 million COVID tests and 4.7 million doses in fiscal Q3. Wall Street, on average, sees a 20% upside in the stock from here.
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Walgreens future guidance
For the full financial year, Walgreens Boots Alliance Inc reiterated its guidance for a low-single-digits percentage growth in its adjusted per-share earnings. This compares to the experts’ forecast for a 2.6% increase.
Earlier this week, Walgreens said it had decided to keep “Boots” following a strategic review. In the earnings press release, CEO Rosalind Brewer said:
Walgreens Health achieved 65% pro forma sales growth, already exceeding our 2022 target. With our decision to conclude the Boots strategic review, I firmly believe our strategic actions are working to deliver long-term shareholder value.
The stock is down nearly 30% from its year-to-date high.