Walgreens Stock Hits 27-Year Low After Massive Earnings Miss
Walgreens Boots Alliance stock is tanking Thursday the pharmacy retailer came up short of earnings expectations and slashed its full-year outlook.


Walgreens Boots Alliance (WBA) stock is down nearly 25% Thursday to trade at a 27-year low after the pharmacy retail chain missed earnings expectations for its fiscal third quarter and cut its outlook for the full year.
In the three months ended May 31, Walgreens' revenue increased 2.6% year-over-year to $36.4 billion, which included a 2.3% year-over-year rise in its domestic retail pharmacy segment to $28.5 billion. The company said earnings per share (EPS) slumped 36.6% to 63 cents from the year-ago period.
"We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins," Walgreens CEO Tim Wentworth said in a statement. "Our results and outlook reflect these headwinds, despite solid performance in both our International and U.S. Healthcare segments."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $35.9 billion and earnings of 68 cents per share.
As a result of "challenging pharmacy industry trends and a worse-than-expected U.S. consumer environment," Walgreens cut its full-year earnings guidance. The company now anticipates EPS in the range of $2.80 to $2.95, down from its previous guidance of a range of $3.20 to $3.35.
Is Walgreens stock a buy, sell or hold?
It's been a rough stretch for the former Dow Jones stock, which was replaced in the 30-stock index by Amazon (AMZN) earlier this year. Indeed, shares were down nearly 40% heading into today's session, so it's unsurprising that Wall Street is on the sidelines when it comes to WBA.
According to S&P Global Market Intelligence, the average analyst target price for WBA stock is $21.52, representing implied upside of more than 82% to current levels. Despite the significant implied upside, the consensus recommendation is a Hold.
Given the weak quarter and reduced full-year outlook, it would not be a surprise to see analysts downwardly revise their price targets on WBA stock in the days and weeks ahead.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Retirement Bucket Rule: Your Guide to Fear-Free Spending
Forget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
How Big Will the Fed Rate Cut Be This Fall?
A dismal July jobs report has lifted expectations for fall rate cuts. But just how low could the fed funds rate be by year's end?
-
How Big Will the Fed Rate Cut Be This Fall?
A dismal July jobs report has lifted expectations for fall rate cuts. But just how low could the fed funds rate be by year's end?
-
Five Ways to Maintain Charitable Giving During Volatile Times: A Giver's Guide
When the economic outlook is uncertain, charitable giving is even more important — and impactful. You can be strategic by using donor-advised funds, diversifying assets and prioritizing unrestricted gifts.
-
Avoid Medicare's 'Shadow Tax' With This Financial Expert's IRMAA-Busting Tips
You're cruising along in retirement, and then bam: Your Medicare premiums soar because your income crossed the limit. Take a breath. There could be a solution.
-
Grilling Season and ETFs: There's More Than One Way to Cook Up a Portfolio
Exchange-traded funds come in a multitude of 'flavors' these days, from passive to active to factor-based. Their flexibility is what makes them so delicious.
-
You Don't Want It, But You Should Plan for It Anyway: An Expert Guide to Long-Term Care
Planning for long-term care is crucial to protect your independence, family and financial stability against unexpected health events and rising care costs not covered by standard insurance.
-
Japan Tariffs: 5 Things That Might Get More Expensive for You
President Donald Trump's trade agreement with Japan features a 15% reciprocal tariff for all imported products, which could impact the prices of these items when you go shopping.
-
Five Questions to Help Ensure a Happy, Secure Retirement
You need to drill down to what you really want out of retirement. Then you can get down to the business of crafting a financial plan to make it happen.
-
I'm a Financial Adviser: This Is How You Can Save for Big Goals Even if You Feel Like You're Barely Getting By
Learning good financial habits — building an emergency fund, paying down debt, saving consistently — gives you flexibility, options and a path to security.