Walgreens revises outlook after profits slip

Walgreens Boots Alliance reported a profit of $118 million for the latest quarter; a year earlier, the healthcare disruptor recorded a profit of $289 million. 

The poor third-quarter profit led the company to revise its yearly outlook. Walgreens cut its full-year earnings outlook to between $4 and $4.05 a share from $4.45 and $4.65 a share.

The decision reflects less demand for COVID-19 tests and vaccines and a murky macroeconomic outlook.

Despite the falling profits, Walgreens reported an 8.6 percent jump in year-over-year sales, according to a June 27 Walgreens news release.

"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. We are raising our cost savings program target to $4.1 billion and taking immediate actions to optimize profitability for our U.S. healthcare segment," Walgreens Boots Alliance CEO Rosalind Brewer said in the release.

 

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