Walgreens Boots Alliance (WBA:US) provided its financial outlook for 2024, and the guidance fell short of the average analyst estimate. 

For the 2024 year, the company sees adjusted EPS of $3.20 to $3.50, missing the estimate of $3.70. Sales are expected to be between $141 billion and $145 billion, slightly below the estimate of $144.21 billion.

For FQ4, the adjusted EPS for the quarter was $0.67, lower than the estimate of $0.69.

Sales for the quarter reached $35.42 billion, representing a 9.2% year-over-year increase, surpassing the estimate of $34.79 billion.

In the United States, sales were $27.67 billion, showing a 3.7% year-over-year growth, exceeding the estimate.

“Our performance this year has not reflected WBA’s strong assets, brand legacy, or our commitment to our customers and patients. In just six weeks, we have taken a number of steps to align our cost structure with our business performance, including planned cost reductions of at least $1 billion, and lowered capital expenditures by approximately $600 million,” said Interim Chief Executive Officer Ginger Graham.

WBA shares are down 40% year-to-date. The stock has been moving higher in recent days on the announcement that healthcare veteran Tim Wentworth will join as the new CEO.

The company has planned cost reductions of at least $1 billion and has lowered capital expenditures by about $600 million. The impact of these cost reductions is expected to be seen in 2024, starting in the second quarter. 

WBA’s FY2024 adjusted EPS is expected to be affected by lower sale and leaseback contributions, a higher tax rate, and lower COVID-19 contributions. 

The company sees 2024 adjusted operating income ranging from $3.4 billion to $3.7 billion. In the fourth quarter, adjusted EPS reflected a 23.5% headwind from significantly lower COVID-19 vaccine and testing volumes.

Congressman Ro Khanna has been actively selling WBA shares in recent months.