Walgreens (NASDAQ:WBA) on Thursday offered soft profit guidance and reported fiscal fourth-quarter earnings that fell short of expectations, as demand for Covid vaccines and tests sinks in the U.S.
The retail pharmacy giant – squeezed by the transition out of the COVID pandemic, a leadership shakeup, its wobbly push into health-care and recent labor pressure from pharmacy staff – has now underperformed Wall Street’s adjusted earnings expectations for two straight quarters. The last time Walgreens posted a consecutive earnings miss was nearly a decade ago.
The company said it expects adjusted earnings per share of $3.20 to $3.50 in the coming fiscal year, which is lower than analysts’ estimate of $3.72. Walgreens expects lower COVID-related sales, along with a higher tax rate and lower sale and leaseback contributions, to offset earnings growth.
Walgreens also sees revenue for the year at $141 billion to $145 billion. Wall Street analysts estimated sales of more than $144 billion.
Earnings per share registered at 67 cents adjusted vs. 69 cents expected, on revenue of $35.42 billion vs. $34.78 billion expected by experts.
The company reported a net loss of $180 million, or 21 cents per share, for the fiscal fourth quarter. That compares with a net loss of $415 million, or 48 cents per share, during the same period a year ago. Excluding certain items, adjusted earnings per share were 67 cents for the quarter.
WBA shares began Thursday up 20 cents to $22.80
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