Walgreens Boots Alliance announces 2024 earnings forecast that misses estimates

Investing.com -- Walgreens Boots Alliance (NASDAQ:WBA) has unveiled an income forecast for its current fiscal year that missed analysts' expectations, as the retail pharmacy group flagged the impact of lower COVID-related sales and higher taxes.

In its full-year earnings update, the company said it now sees adjusted earnings per share (EPS) of between $3.20 to $3.50 during its 2024 financial period, down from $3.98 in the twelve months ended on Aug. 31. Bloomberg consensus estimates had seen the figure at $3.70.

The Illinois-based firm said that an anticipated downturn in contribution from COVID-19 vaccine and testing sales, as well as an elevated tax rate, would more than offset incremental cost savings across the business and "accelerating profitability" in its U.S. healthcare division.

The post-pandemic fall in demand for COVID jabs and swabs also dented the final quarter of Walgreens' 2023 fiscal year, with adjusted EPS of $0.67 coming in below projections of $0.69.

“Our performance this year has not reflected WBA’s strong assets, brand legacy, or our commitment to our customers and patients," said interim Chief Executive Officer Ginger Graham in a statement.

Walgreens announced this week that Tim Wentworth had been appointed as CEO following the abrupt departure of Rosalind Brewer in September. Brewer had been aiming to push Walgreens into more lucrative healthcare offerings to help account for rising online competition facing its chain of pharmacies.

Shares slipped in premarket U.S. trading on Thursday.