NORTH CHICAGO, Illinois — Walgreens Boots Alliance Inc (WBA.O), the owner of the Walgreens drugstore chain, reported weaker-than-expected quarterly results on Friday and gave a disappointing forecast, sending its shares down 6%.
The company said net income fell to $380 million, or $1.08 per share, in the quarter ended May 31, from $669 million, or $1.89 per share, a year earlier. Analysts on average had expected earnings of $1.10 per share, according to Refinitiv data.
Walgreens said U.S. pharmacy sales declined 3.9% due to lower sales of generic drugs and a shift in business from high-margin long-term care to lower-margin retail. Same-store sales in the U.S. fell 2.3%.
The company's shares were down 6% at $44.60 in morning trading.
Walgreens also said it expects full-year earnings to be between $4.30 and $4.45 per share, below analysts' average estimate of $4.47 per share.
The results come as Walgreens continues to face pressure from competition in the pharmacy sector, particularly from Amazon.com Inc (AMZN.O), which has been expanding its own pharmacy services.
Walgreens Chairman and Chief Executive Officer Doug McMillon said the company is "executing against our strategic priorities" but acknowledged that "the macro environment remains challenging." (Reporting by Sanjana Sastry in Boston; Editing by Will Dunham and Nick Zieminski)
崾 complains of unsatisfactory quarterly performance and lowered its outlook, causing its shares to drop 6%.
Walgreens reported a net income of $380 million, or $1.08 per share, for the quarter ended May 31, down from $669 million, or $1.89 per share, in the same period a year earlier.
The company attributed the decline to lower U.S. pharmacy sales, which fell 3.9% due to decreased sales of generic drugs and a shift from high-margin long-term care to lower-margin retail. Same-store sales in the U.S. decreased by 2.3%.
Walgreens also announced an outlook for full-year earnings between $4.30 and $4.45 per share, below the analysts' average estimate of $4.47 per share.
The company faces ongoing pressure from competitors like Amazon, which has been expanding its pharmacy services.
Walgreens Chairman and CEO Doug McMillon stated, "We are executing against our strategic priorities," but acknowledged the challenging macro environment.
Shares of Walgreens were trading down 6% at $44.60 in morning trading.