CVS Health Corporation (NYSE:CVS) shares are trading lower on Tuesday in sympathy with Walgreens Boots Alliance (NASDAQ:WBA) after the company lowered its fiscal year 2023 guidance.
What To Know:
Walgreens has lowered its 2023 adjusted EPS guidance to $4.00 – $4.05 from the previous $4.45 – $4.65 noting consumer and category conditions, a more cautious macroeconomic outlook and lower COVID-19 contributions.
Walgreens reported an increase in sales for the third-quarter, with 8.6% year-over-year growth to reach $35.4 billion. On a constant currency basis, sales were up 8.9%, surpassing the consensus estimate of $34.25 billion.
The company’s reported earnings per share (EPS) for Q3 were $0.14, representing a $0.20 decrease compared to the same quarter last year. However, adjusted EPS showed a positive trend, increasing by 3.3% to $1.00. On a constant currency basis, adjusted EPS rose by 3.6%. This growth was impacted by a 19.5% decrease caused by significantly lower volumes of COVID-19 vaccines and testing. The adjusted EPS figure missed the consensus estimate of $1.07.
Related News: Walgreens Boots Stock Plunges After Q3 Earnings – Here’s Why
CVS Price Action: According to Benzinga Pro, CVS shares are trading lower by 2.33% at $68.44 at the time of publication.
Image: Courtesy of CVS Health Corporation
