"Walgreens Surpasses Earnings Forecasts Despite Halving Dividend Amid Cost-Cutting Measures"
Originally Published 2 years ago — by CNBC
Walgreens reported a fiscal first-quarter earnings and revenue beat, surpassing Wall Street expectations. However, the company significantly cut its quarterly dividend from 48 cents to 25 cents per share, marking the first reduction in nearly 50 years, to improve its balance sheet and cash position. Despite the dividend cut, the company saw a 10% increase in sales, driven by its U.S. retail pharmacy and international business segments, as well as contributions from its U.S. healthcare division. Walgreens is in the midst of a transformation to become a larger healthcare company, maintaining its adjusted earnings guidance for fiscal 2024 while expecting over $1 billion in savings from cost-cutting measures.