Why Shares of Walgreens Are Dropping Tuesday

Shares of Walgreens Boots Alliance (NASDAQ: WBA) were down more than 9% an hour after the market opened, after the drug store chain released third-quarter earnings. The stock is down more than 24% so far this year.

Walgreens' third-quarter report was seen as a miss on several levels. Earnings per share (EPS) was reported as $0.14, down 59% year over year, with the healthcare company citing lower COVID-19 vaccine and testing volumes as the culprit. The company did see sales of $35.4 billion, up 8.6% over the same period last year, but it also downgraded yearly guidance.

In the report, Walgreens said it expected yearly adjusted EPS of $4 to $4.05, down from earlier estimates of between $4.45 and $4.65, again citing lower COVID-19 related sales and a more cautious consumer. 

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Source Fool.com