- Walgreens (WBA) fell 12% on Tuesday after the company posted earnings that missed Wall Street expectations.
- Our outlooks remains negative into the summer months, with a target of $50.
The company reported earnings per share of $1.64 and total revenue of $34.53 billion, compared to analyst estimates of $1.72 and $34.56 billion. For the fiscal year, the company reduced its guidance from 7-12% growth to flat.
CEO Stefano Pessina provided a clear explanation: “The market challenges and macro trends we have been discussing for some time accelerated. However, our response was not rapid enough given market conditions, resulting in a disappointing quarter that did not meet our expectations.”
Our analysis has had this stock as negative, expecting lower prices into June-July. As it has broken cycle support, our target now is near $50.
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