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Walgreens Earnings: WBA Stock Plummets 9% on Mixed Q3 Results

Walgreens (NASDAQ:WBA) earnings for fiscal third quarter of 2020 have WBA stock crashing hard on Thursday. This comes after reporting revenue of $34.63 billion, which is better than Wall Street’s estimate of $34.35 billion. However, the company also reported adjusted earnings per share (EPS) of 83 cents, while analysts were expecting EPS of $1.17 for the quarter.

Walgreens store exterior and sign in Pompano Beach, Florida

Source: saaton / Shutterstock.com

The company also reported GAAP losses per share of $1.95 for the period.

Now for a closer look at the most recent Walgreens earnings report.

  • Adjusted per-share earnings are down 43.8% from $1.47 in the same period of the year prior.
  • Revenue comes in less than 1% higher YOY than $34.59 billion.
  • Operating loss of $1.58 billion is a major switch from operating income of $1.2 billion in fiscal Q3 2019.
  • The Walgreens earnings report also includes a net loss of $1.73 billion.
  • That’s not a good look next to the company’s net income of $1.04 billion from the same time last year.

Stefano Pessina, executive vice chairman and CEO of Walgreens Boots Alliance, says this about the WBA stock earnings report:

“Prior to the pandemic our financial performance for fiscal 2020 was on track with our expectations. However, this unprecedented global crisis led to a loss in the quarter as stay-at-home orders affected all of our markets. I’m very proud of how all of our teams mobilized and adapted to deliver essential services in our communities across the world. Shopping patterns are evolving more rapidly than ever as consumers further embrace digital options, spurring us to accelerate our ongoing investments in digital transformation and neighborhood health destinations. This includes our two recent announcements: a significant expansion of our primary care clinics collaboration with VillageMD, and our strategic partnership with Microsoft and Adobe to launch a personalized omnichannel healthcare and shopping experience.”

Additionally, as Pessina mentioned, VillageMD announced on Wednesday that it will open between 500 and 700 doctors’ offices inside of Walgreens stores over the next five years.

Walgreen’s outlook for fiscal 2020 has it expecting EPS of between $4.65 to $4.75, “including estimated adverse COVID-19 impacts of $1.03 to $1.14 per share,” according to the release. That does not look great next to Wall Street analysts calling for per-share earnings of $5.42 during the year.

WBA stock was down 9.3% as of Thursday morning.

Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/07/walgreens-earnings-wba-stock-plummets-9-on-mixed-q3-results/.

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