Walgreens Boots Alliance stock tumbles despite earnings beat

Walgreens Boots Alliance (WBA.US) plunged more than 5.0% during today's session despite the pharmacy chain posted upbeat quarterly figures. 

• Company reported earnings of $1.59 per share compared to analysts’ estimates of $1.40. Revenue of $33.76 billion also topped  market projections of $33.4 billion,
• Comparable pharmacy sales rose 7.3%, helped by demand for Covid vaccines,  
• Same-store sales for retail in the U.S. jumped 14.7%, the largest gain in over 20 years. U.K.-based Boots chain retail same-store sales surged 22% year over year, with share gains across all major categories,
• Company did not lift its forecast for the year due to recent lower demand for Covid testing. Walgreens administered 11.8 million Covid vaccines in Q2, down from 15.6 million in Q1 and many analysts believe that this trend may continue in the future.
• The company’s president John Standley also emphasized that it could take time for its healthcare investments to pay off.

Walgreens Boots Alliance (WBA.US) - looking at D1 interval, one can see that a classic technical pattern is building up - head and shoulders pattern which often heralds declines. Textbook range of a breakout from this pattern suggests a possibility of a downward move to $33.50 - where lows from November 2020 are located. However, a break below the neckline would be needed in order to confirm bearish setup. On the other hand, if buyers manage to regain control, then another upward impulse towards resistance at $56.25 may be launched. Source: xStation5

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