Walgreens Boots Alliance Inc (NASDAQ:WBA) is expected to report a decline in earnings when it reports back for the first quarter before the opening bell on Thursday.
The company, which is reported to be exploring a spinoff of its UK-based Boots drugstore chain, will report 1Q revenues of $34.9 billion for the three months to end November, a year-over-year increase of 4.6%, according to analysts polled by Zacks Investment Research.
Earnings for the quarter, however, are likely to fall 43% to $0.66 per share, based on the consensus forecast of eight analysts.
The company has been impacted by a steep decline in COVID-10 vaccine and testing volumes. With the release of its 4Q 2023 results, it said it had taken steps to align its cost structure with its business performance, including planned cost reductions of at least $1 billion, and lowered capital expenditures by roughly $600 million.
The impact of these actions, which will be led by recently-appointed CEO Tim Wentworth, would start to be seen in 2Q 2024, it said.
Walgreens merged with Boots in 2014 and plans to sell the UK division in 2022 were scrapped after it failed to find a suitable buyer.
According to a report by Bloomberg, the company may also consider listing Boots in London as part of its exit strategy.