Proactive Investors - Walgreens Boots Alliance (NASDAQ:WBA) Inc (NASDAQ:WBA, ETR:W8A)'s fiscal second quarter results took a $5.8 billion hit from impairment charges on its investment in medical clinic operator VillageMD, sending its shares lower in early trade on Thursday.
For the quarter ended February 29, 2024, Walgreens posted adjusted earnings per share (EPS) of $1.20, above estimates of $0.82.
Without adjustments, its loss per share was $6.85 compared to EPS of $0.81 in the year-ago quarter.
Its net loss was $5.9 billion compared to earnings of $703 million in 2Q last year, attributed to the impairment charges.
Quarterly sales were $37.1 billion, ahead of Wall Street estimates of $36.5 billion.
Walgreens also narrowed its 2024 adjusted EPS guidance range to $3.20 to $3.35 from its earlier forecast of $3.20 to $3.50, compared to the Street consensus of $3.23, citing the challenging retail environment in the US.
Walgreens CEO Tim Wentworth told investors he was confident the company could achieve its goal of $1 billion in cost savings this year.
“We are continuing to strategically review our portfolio over the next three months in an effort to ensure it drives growth and delivers value,” Wentworth said.
Shares of Walgreens traded lower following the release of its earnings, down 1.3% at $20.75.