Walgreens Boots Alliance Inc (NASDAQ:WBA) reported weaker-than-expected earnings for its third quarter and lowered profit outlook.
The company’s quarterly sales increased 8.6% Y/Y to $35.4 billion, up 8.9% on a constant currency basis, beating the consensus of $34.25 billion. Adjusted EPS increased 3.3% to $1.00, up 3.6% on a constant currency basis, missing the consensus of $1.07.
Walgreens lowered its FY23 adjusted EPS guidance to $4.00-$4.05 from the previous $4.45 – $4.65 (versus the consensus of $4.45) to account for consumer and category conditions, lower COVID-19 contribution, and a more cautious macroeconomic forward view.
Walgreens shares fell 9.3% to close at $28.64 on Tuesday and lost 0.3% in today’s pre-market trading session.
These analysts made changes to their price targets on Walgreens following earnings announcement.
- Deutsche Bank cut the price target on Walgreens from $46 to $34. Deutsche Bank analyst George Hill downgraded the stock from Buy to Hold.
- Credit Suisse slashed the price target on Walgreens from $41 to $33. Credit Suisse analyst Jonathan Yong maintained a Neutral rating.
- Barclays lowered Walgreens price target from $38 to $32. Barclays analyst Steve Valiquette maintained the stock with an Equal-Weight rating.
- JP Morgan lowered Walgreens price target from $40 to $35. JP Morgan analyst Lisa Gill maintained the stock with a Neutral.
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