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Walgreens delivers a second-quarter earnings beat. (Photo by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images
Walgreens Boots Alliance tumbled Thursday after investors were disappointed by the drugstore chain’s unchanged fiscal-year guidance. The outlook overshadowed a fiscal second-quarter earnings beat driven by Covid-19 vaccines and testing sales.
Walgreens
(ticker: WBA) reiterated its outlook for low-single digits growth in adjusted per-share earnings for the fiscal year ending in August. Analysts at
Credit Suisse
calculated earnings in a range of $4.96 to $5.06 a share.
“The key consideration in relation to the unchanged outlook is what this suggests for FY23 with F2H22 implying a~30% year over year decline in EPS,” said analyst A.J. Rice of Credit Suisse. He rates the stock at Neutral, in line with the 14 other analysts surveyed by
FactSet
.
Walgreens’ earnings projection matches the forecast the company shared in January. The company reported earnings of $4.91 a share in fiscal 2021.
The stock was down 5.5% to $44.84 on Thursday.
Adjusted earnings in the second quarter were $1.59 a share. Analysts surveyed by FactSet were expecting $1.37. Revenue in the quarter was $33.8 billion, higher than the $33.23 billion forecast, and 3% more than a year ago.
Walgreens said it saw “strong execution across business segments, led by Covid-19 vaccinations and testing,” driving comparable-sales growth for U.S. retail, up 14.7% from a year ago. In particular, health…
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