- Walgreens said it would cut costs by at least $1 billion to try to recover from recent events that sent the stock plunging.
- Quarterly profit and forecast for The company's full year missed estimates.
- The pharmaceutical giant has struggled amid falling demand for COVID-19 vaccines and tests, #39;expansion of its healthcare offering and the resignation of its CEO.
Shares of Walgreens Boots Alliance (WBA) rose Thursday after the largest U.S. drugstore chain announced a major cost-cutting program as it struggles to overcome recent challenges, including a CEO shakeup.
Acting CEO Ginger Graham said performance in 2023 “did not reflect WBA's strong assets, brand heritage or our commitment to our customers and patients.” She added that the company was cutting expenses by at least $1 billion and cutting capital expenditures by about $600 million.
Walgreens reported fourth-quarter fiscal 2023 earnings of 67 cents per share, missing forecasts as demand for COVID-19 vaccines and tests declined. Revenue rose 9.2% year-over-year to $35.42 billion, more than expected.
Company now expects profit per share (EPS) for 2024 between $3.20 and $3.50, below estimates. It forecast revenues of between $141 billion and $145 billion, while analysts were expecting $144 billion.
Walgreens shares fell to levels never seen in this century as the company faced several challenges, including the expansion of its health care services and a management shakeup when former CEO Roz Brewer abruptly resigned last month. The company announced Wednesday that former Cigna (CI) executive Tim Wentworth will take over as CEO on October 23.
Even with Thursday's gains , Walgreens shares have lost more than a third of their value this year.
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