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Stock Alert: Walgreens Down 6% On Weak Q3 Results, Job Cut

Shares of Walgreens Boots Alliance Inc. (WBA) are losing more than 6 percent or $2.78 in Thursday's morning trade at $39.51 after the drugstore chain's earnings for the third quarter missed analysts' expectations and it also forecast earnings for the full-year below estimates.

Walgreens' net loss for the third quarter was $1.71 billion or $1.95 per share, compared to net income of $1.03 billion or $1.13 per share in the year-ago period. It earned $0.83 per share on adjusted basis compared to $1.47 per share a year ago. Revenue edged up to $34.63 billion from $34.59 billion in the same period last year. On average, analysts polled by Thomson Reuters expected earnings of $1.17 per share on revenues of $34.35 billion. Analysts' estimates typically exclude special items.

For fiscal 2020, Walgreens now expects adjusted earnings in a range of $4.65 to $4.75 per share, including estimated adverse COVID-19 impacts of $1.03 to $1.14 per share. The Street expects the company to report earnings of $5.42 per share for the year.

Walgreens also said that as part of accelerating the Boots Transformation Plan, it will close 48 Boots Opticians stores and implement an additional 20 percent headcount reduction in the UK support office. The reorganization actions will impact more than 4,000 positions, or 7 percent of the workforce.

The stock has traded in a range of $36.65 to $64.50 in the past 52 weeks.

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