Walgreens Boots Alliance (NASDAQ:WBA) stock is taking a beating on Tuesday after the company warned investors of lower earnings in its latest report.
According to Walgreens, several factors are weighing on its business for 2023. That includes the company not seeing as much spending on Covid-19 products. Another issue is macroeconomic factors that are affecting its business.
As a result of this, the company has lowered its outlook for the fiscal full year of 2023 in its most recent earnings report. It now expects earnings per share to range from $4.00 to $4.05, as compared to its prior guidance of $4.45 to $4.65. To put that in perspective, Wall Street is expecting an EPS of $4.45 for the year.
Rosalind Brewer, CEO of Walgreens Boots Alliance, said the following about this in the company’s fiscal Q3 2023 earnings report:
“Significantly lower demand for COVID-related services, a more cautious and value-driven consumer, and a recently weaker respiratory season created margin pressures in the quarter. Our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty, while still demonstrating clear drivers of a return to operating growth next fiscal year.”
WBA Stock Hit By Earnings Miss Too
The bad news continues with WBA reporting adjusted EPS of $1 for the fiscal third quarter of 2023. That’s below Wall Street’s estimate of $1.07 per share. That’s despite its revenue of $35.4 billion, beating analysts’ estimate of $34.24 billion.
The earnings report also has WBA stock seeing heavy trading volume on Tuesday. That has some 19 million shares changing hands. This is already well above the company’s daily average trading volume of about 19 million shares.
WBA stock is down 9.4% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
