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
Get Kiplinger Today newsletter — free
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.
-
Wall Street Is Worried About Apple Stock. Should You Be Too?
Analysts expect Trump's sweeping tariffs to have an outsized impact on Apple stock. How concerned should investors be?
By Karee Venema Published
-
Machine Learning in Finance: Real-World Applications and Challenges
Controlling machine learning in a finance environment requires stakeholders' commitment to creating a strong ethical foundation.
By Clay Bethune Published
-
Wall Street Is Worried About Apple Stock. Should You Be Too?
Analysts expect Trump's sweeping tariffs to have an outsized impact on Apple stock. How concerned should investors be?
By Karee Venema Published
-
The Stock Market Is Selling Off. Here's What Investors Should Do
Investors are fleeing the equities market en masse in response to the Trump administration's "jaw-dropping" tariffs. But the experts say don't panic.
By Karee Venema Last updated
-
How Building Liquidity Into Your Retirement Plan Can Pay Off
To succeed in investing for retirement, you need time and discipline — liquidity can give you both.
By Samantha Compton, IAR Published
-
Striking Oil in Opportunity Zones: Now Might Be the Best Time to Invest
You could unlock hidden wealth in QOZs with strategic oil and gas investments, potentially combining tax advantages with long-term growth in an essential industry.
By Daniel Goodwin Published
-
Stock Market Today: It's the Old Up-Down Again on Liberation Day
Markets look forward to what comes with the reordering of 80-year-old global trade relationships.
By David Dittman Published
-
Can a New Manager Cure Vanguard Health Care Fund?
Vanguard Health Care Fund has assets of $40.5 billion but has been ailing in recent years. With a new manager in charge, what's the prognosis?
By Nellie S. Huang Published
-
What You Don't Know About Annuities Can Hurt You
Lack of awareness leads many to overlook these potent financial tools, and with the possibility of running out of money in retirement, that could really hurt.
By Ken Nuss Published
-
Three Keys to Logical Investing When Markets Are Volatile
Focusing on these market fundamentals can help investors stay grounded rather than being swayed by emotion or market hysteria.
By Dennis D. Coughlin, CFP, AIF Published