Walgreens surges in premarket on upbeat quarterly results

Walgreens (WBA.US) stock briefly jumped nearly 7.0% in the premarket after the drugstore operator posted better-than-expected quarterly profit and revenue. The company also raised its long-term sales targets.

• The drugstore chain earned 80 cents per share, down 31.6% from the same period last year, however 3 cents above analysts’ estimates. Revenues dropped 5.3% from last year to $32.4 billion, beating market consensus of a $32.085 billion tally, as U.S. same-store sales rose 1.6%.
• Comparable sales at Boots, its U.K.-based division, jumped 15.2% from last year, even amid a 6.9% slump in overall pharmacy revenues. 
• When it comes to fiscal 2023, the company expects adjusted EPS of $4.45 to $4.65, in the midpoint of the FactSet projections of $4.51. U.S. Healthcare fiscal 2025 sales target was lifted to $11 billion to $12 billion from $9 billion to $10 billion. 

Walgreens (WBA.US) stock plunged over 14.0% within the past three months. Stock rose sharply before the opening bel, however most of the gains were erased after US CPI release. Currently price is trading near the upper limit of the local descending channel. However if current sentiment prevails, another downward move may be launched towards recent lows at $30.45. Source: xStation5