Walgreens edges past Wall St39;s lowered Q4 profit estimates
Forecasts FY adj EPS of 1.401.80, vs estimate of 1.73
Shares gain 12.3

Oct 15 Reuters Walgreens Boots Alliance said on Tuesday it would shut 1,200 stores over the next three years as new CEO Tim Wentworth plots a turnaround at the struggling pharmacy chain operator hit by sluggish consumer spending and low drug reimbursement rates.

The company narrowly beat Wall Street39;s lowered estimates for fourthquarter adjusted profit, and forecast fiscalyear earnings that were mostly in line with expectations.

Its shares jumped 12.3 to 10.11 in morning trade. The stock has fallen 65 this year, up to its last close, making it the worst performer on the SP 500 index.

At first blush, the forecast looks better than worstcase scenario, said Leerink Partners analyst Michael Cherny, adding that Walgreens continues to be buffeted by macro challenges that did not abate in the quarter.

Pharmacy chains are facing multiple challenges as consumers avoid highpriced grocery items and pressures mount on payments they receive from pharmacy benefit managers for filling prescriptions.

CEO Wentworth has unveiled a series of changes since taking on the top job last year, including the removal of multiple midlevel executives and a 1 billion costcutting program.

This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term, Wentworth said in a statement….