Walgreens earnings tumbled 55% in its fiscal fourth quarter on bills tied to its cost-cutting program, however the drugstore chain topped Wall Street expectations.
The Deerfield-based firm additionally mentioned Monday it was setting a better objective for its cost-cutting program, and it anticipated fiscal 2020 earnings to come back in roughly flat when adjusted for foreign money modifications. The firm posted adjusted earnings of $5.99 in fiscal 2019.
Analysts anticipate, on common, earnings of $5.95 per share, in response to FactSet.
Walgreens runs greater than 18,750 shops internationally however has been trimming its complete as a part of its plan to chop prices. Walgreens has been hit by challenges together with reimbursement cuts and lower cost will increase for branded medicine.
Drugstores additionally face competitors in areas outdoors their pharmacies from on-line choices like Amazon.com.
Walgreens mentioned Monday it has raised its annual financial savings goal from its value slicing program to greater than $1.eight billion by fiscal 2022, up from a earlier objective to exceed $1.5 billion.
In the ultimate quarter of fiscal 2019, Walgreens earnings fell to $677 million from $1.51 billion the earlier yr, when the corporate acquired a lift from some drugstores it had acquired from Rite Aid.
Earnings, adjusted for one-time good points and prices, got here to $1.43 per share within the quarter that ended August 31.
Revenue climbed 1.5% to $33.95 billion.
Analysts exceed, on common, earnings of $1.41 per share on $33.86 billion in income, in response to Zacks Investment Research.
For the yr, the corporate reported revenue of $3.98 billion whereas income totaled $136.87 billion.
The inventory had dropped 19% because the starting of the yr as of Friday’s shut. Meanwhile, the Dow Jones industrial common, of which Walgreens is a part, has climbed almost 16%.