U.S. retail pharmacy chain Walgreens Boots Alliance (WBA) has reported better-than-expected financial results but lowered its profit outlook as it grapples with a “challenging economy.”
The company announced earnings per share (EPS) of $1.20 U.S., which was above the $0.82 U.S. expected on Wall Street.
Revenue for the fourth quarter of 2023 came in at $37.05 billion U.S. versus $35.86 billion U.S. that was expected among analysts who track the company’s progress.
Despite the Q4 earnings beat, Walgreens lowered its 2024 profit guidance to $3.20 U.S. to $3.35 U.S. per share, down from a previous outlook that called for $3.20 U.S. to $3.50 U.S. in per share earnings.
Analysts had expected full-year earnings of $3.24 U.S. a share from Walgreens.
The Chicago-based company said the reduced guidance reflects an uncertain economic environment and challenging retail sector in the U.S.
The company did not give a new revenue forecast for the year ahead.
Walgreens has struggled with slumping demand for Covid-19 medications, low pharmacy reimbursement rates, and a failed push into healthcare services.
Under new CEO Tim Wentworth, Walgreens has undertaken an aggressive cost reduction program, announcing in January that it was cutting its dividend payment by nearly 50%.
Walgreens stock was recently removed from the Dow Jones Industrial Average and replaced by e-commerce giant Amazon (AMZN).
The stock of Walgreens has declined 38% over the last 12 months and currently trades at $21.02 U.S. per share.