Walgreens Boots Alliance’s shares rose despite reporting disappointing earnings for the fourth quarter report and fiscal year 2023.
The US pharmacy giant ended Thursday’s session with a 7.04% climb to $24.19, $1.59 higher than its previous close. Its stock declined by 0.54% to $24.06 in post-market trading following the announcement of Tim Wentworth as newly appointed CEO.
The company’s profits came in at $3.98 per share in fiscal 2023, while its fourth-quarter earnings were at $0.67 per share, with sales at $35.40 billion.
The earnings came as Walgreens addressed issues in its main US pharmacy operations and substantial investment in unprofitable primary care and urgent chains. Based on reports, the pharmacy operates while handling considerable debt, and its short-term obligations are more than its liquid assets.
Amid the leadership change, Walgreens anticipates growth under Wentworth’s guidance. Wentworth had taken leadership roles at divisions of healthcare insurance Cigna and prescription plan provider Express Scripts.
The new CEO’s potential impact on the company’s financial performance remains uncertain.
Walgreens Posts Q3 Revenue Growth, Misses EPS Expectations
On Thursday, Walgreens released its third-quarter earnings results, disclosing a revenue surge and a miss in earnings per share (EPS) estimates.
Walgreen’s revenue rose 9.2% year-over-year (YoY) to $35.42 billion, topping Zacks Consensus Estimate’s forecast. EPS slipped to $0.67 from its previous $0.80 YoY, missing EPS expectations.
The company also revealed 8,720 locations, which surpassed the expected 8,689. In addition, Walgreens posted a substantial rise in comparable sales for US Retail Pharmacy, increasing 9.2% compared to analysts’ estimates of 0.6%.
Revenue in the US Retail Pharmacy segment was $21.13 billion, while wholesale earnings in retail generated $6.54 billion and $2.90 billion in international.
