Walgreens (NYSE:WBA) fell 12% on Tuesday after the company posted earnings that missed Wall Street expectations.
Our outlook remains negative for Walgreen’s stock (WBA) into the summer months, with a target of $50.
Walgreens earnings per share of $1.64 and total revenue of $34.53 billion fell short of analyst estimates of $1.72 and $34.56 billion.
For the fiscal year, the company reduced its guidance from 7-12% growth to flat.
Walgreens 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 Walgreens stock as negative, expecting lower prices into June-July. It has now broken cycle support, placing our new target closer to $50.
Walgreens (WBA) Stock Weekly Chart
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