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Walgreens Boots Alliance Slashes FY19 Adj. EPS Growth Outlook - Quick Facts

While reporting financial results for the second quarter on Tuesday, Walgreens Boots Alliance, Inc. (WBA) slashed its adjusted earnings guidance for the full-year 2019.

For fiscal 2019, the company reduced its adjusted earnings growth guidance to now be roughly flat, at constant currency rates, from the earlier projected growth range of 7 to 12 percent. On a reported currency basis, the company anticipates about $0.04 cents per share of adverse currency impact.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $6.46 per share for the year. Analysts' estimates typically exclude special items.

Further, the company increased targeted annual cost savings to in excess of $1.5 billion from in excess of $1 billion by fiscal 2022 from the Transformational Cost Management Program. The company's global cost review, scheduled for completion by the end of April 2019, has provided sufficient visibility to increase the target.

During the second quarter and since the quarter ended, the company has taken decisive steps to reduce costs in the UK and to optimize the field management structure in the U.S.

On its long-term business model, the company confirmed its existing transformation priorities and announced it will be taking immediate action to reinforce and accelerate them. The company's business model aims to deliver improved performance in 2020, and mid-to-high single-digit growth in adjusted earnings, at constant currency rates, in the following years.

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