Walgreen Boots Alliance stock falls after negative forecast

Walgreens Boots Alliance (NASDAQ:WBA) is a Deerfield, Illinois-based company that operates as a healthcare, pharmacy and retailer in the United States, United Kingdom, Germany and worldwide. The retailer’s shares tumbled more than 20% in after-hours trading before the market opened on Thursday, June 27, 2024. The company’s shares were hit hard after the drugstore chain cut its profit guidance.

Investors could view Walgreens’ third quarter (Q3) 2024 earnings before the markets open on June 27, 2024. In Q3 2024, the company reported earnings per share ($0.40 EPS0 – up from $0.14 in the third quarter of fiscal 2023. However, excluding non-cash impairment-adjusted EPS, it fell 36% year-over-year to $0.63 on a constant currency basis, which it was due to a challenging retail environment and “recent trends in the pharmaceutical industry”.

The company said it would cut its full-year 2024 guidance to between $2.80 and $2.95. Once again, Walgreens pointed to “challenging pharmacy industry trends” and a “worse-than-expected US consumer environment.”

Walgreens also provided an update on its strategic review. The company said it is completing its multi-year footprint optimization program to close certain underperforming U.S. stores. In addition, it is launching an action plan for US retail pharmacies to invest in and deliver an improved customer and patient experience across all channels.

Walgreens stock is trading in favorable value territory relative to its industry peers at the time of writing. Furthermore, its earnings are still positioned to deliver a recovery in the coming months.

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