Walgreens Boots' earnings fall short of estimates
WALGREENS BOOTS
$17.70
13:09 26/04/24
Pharmacy chain Walgreens Boots Alliance's earnings fell short of Wall Street's expectations on Wednesday, sending shares lower at the bell.
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Walgreens posted earnings of $1.37 per share, short of the $1.41 expected by analysts, and revenues of $34.34bn, also shy of estimates of $34.6bn, but maintained its outlook for full-year adjusted earnings at "roughly flat".
On an unadjusted basis, Walgreens' first-quarter net income fell 24.8% to $845m, or $0.95 per share, from $1.12bn a year earlier.
Same-store sales rose 1.6% year-on-year despite more consumers shopping online for drugstore staples like shampoo and vitamins.
As a result, WGA said it was now aiming to cut costs by more than $1.8bn by 2022. Chief executive Stefano Pessina said the company was "satisfied with the progress" made by its cost-cutting program.
Pessina said: "We are confident our strategic plans are the right ones to drive long-term sustainable growth going forward."
WGA also revealed it would stop selling e-cigarettes in October.
As of 1605 GMT, Walgreens Boots shares were down 6.44% at $55.47 each.