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Tuesday, April 2, 2019

Walgreens misses quarterly earnings estimates, lowers full-year forecast

Walgreens Boots Alliance on Tuesday reported quarterly earnings and revenue that missed analysts' expectations.

The drugstore chain also lowered its full-year earnings forecast to be roughly flat, compared with its previous forecast of 7 percent to 12 percent growth.

Here's what the company reported for the fiscal second quarter compared with what Wall Street was expecting, based on average analysts' estimates compiled by Refinitiv:

  • Adjusted earnings per share: $1.64 vs. $1.72 expected
  • Revenue: $34.53 billion vs. $34.56 billion expected

Executives from Walgreens and rival CVS Health have warned investors in recent months that profits might not be all that fat this year. The Trump administration has been pressuring drugmakers and pharmacy benefits managers to lower consumer prices, both of which may cut into the bottom line for drugstore chains.

Drugstores are trying to diversify their products and experiment with new ways to get people into their stores. Walgreens last week said it will sell CBD products in about 1,500 of its stores, following CVS.

Walgreens is working with LabCorp, Humana, Sprint and others on everything from offering senior care services to selling phones in their stores. CVS is changing up its business model after buying health insurer Aetna for $70 billion late last year.

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