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WBA Stock Dropped After the Pharmacy Chain Reported Better-than-expected Third-quarter Profits, but Lower-than-expected Third-quarter Profits.

Originally published on Best Stocks

Adjusted profits of 96 cents a share, topping expectations of 90 cents a share, but lower than last year’s earnings per share of $1.51, were disclosed by Walgreens (NASDAQ: WBA).

For fiscal 2022, the business expects adjusted earnings per share to expand by a low single-digit percentage.

Rosalind Brewer, WBA’s CEO, commented, “WBA produced great performance across operational sectors and against extremely significant growth.” Our third-quarter results were in line with our expectations, highlighting our business’s resiliency due to our extensive community ties and relevance to customers.”

As a result, adjusted operating income fell 33.5 percent to $1 billion, much above the $932 million analysts expected. Covid-19 vaccines and expansion investments in Walgreens Health were cited as the main causes of the drop in revenue, according to the business. The drug deal with Florida has cost Walgreens $683 million in net operating profits.

FactSet reports that sales came in at $32.6 billion, somewhat more than the $32.1 billion expected, but down 4.2% from the previous year. The company’s digital sales climbed by 25% in the third quarter, compared to a 95% increase in the same time the previous year.

In premarket trade on Thursday, Walgreens was down 2.4% to $39.90.

An “unexpected and drastic upheaval” in global financial markets prompted the firm to suspend its plans to sell Boots and No7 Beauty earlier this week.

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