Walgreens Boots Alliance Inc

WBA: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$67.00	Fgh	Dfdf

Walgreens Earnings: Poor Results Due to Low COVID-19 Sales, Cautious Consumers, Weak Cough Season

Keonhee Kim

Jun 27, 2023

Walgreens' fiscal third-quarter results were below our expectations. Total sales were up 8.6% year over year, but the company generated an operating loss against a difficult backdrop of significantly lower demand for COVID-19-related services, price-sensitive consumers, and slower-than-expected profit growth for the U.S. healthcare segment. We have lowered our fair value estimate to $40 per share from $48 to reflect reduced margin expectations for 2023 and beyond as well as a slower ramp-up of the U.S. healthcare business.

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