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October 13, 2023 : Walgreens Boots Alliance (WBA) stock rose more than 4% on Thursday, even after the company reported fiscal fourth-quarter earnings that fell short of expectations. The retail pharmacy giant offered soft profit guidance for the coming year as it expects demand for COVID-19 vaccines and tests to continue to decline.
However, investors were encouraged by Walgreens’ progress on its cost-cutting initiatives. The company said it saved $2.1 billion in costs in fiscal 2023 and expects to save even more in fiscal 2024. Walgreens is also progressing on its transformation plan, which is focused on expanding its healthcare services and reducing its reliance on traditional pharmacy sales.
In its fiscal fourth quarter, Walgreens reported earnings per share of $1.17, below analysts’ consensus estimate of $1.24. Revenue came in at $32.8 billion, slightly below expectations.
For the full fiscal year, Walgreens reported earnings per share of $5.07, down from $5.20 in the prior year. Revenue was $134.2 billion, down from $137.5 billion in the prior year.
Looking ahead, Walgreens expects adjusted earnings per share of $3.20 to $3.50 in fiscal 2024, below analysts’ consensus estimate of $3.72. The company also expects revenue growth of 3% to 5% in fiscal 2024.
Despite the soft profit guidance, investors were encouraged by Walgreens’ progress on its cost-cutting initiatives and its transformation plan. The company is well-positioned to benefit from the long-term growth of the healthcare sector.
