Walgreens Boots Alliance Inc's (WBA  ) Q4 FY23 sales increased 9.2% Y/Y to $35.4 billion, up 8.3% on a constant currency basis, beating the consensus of $34.82 billion.

Adjusted operating income was $683 million, down 9.8% Y/Y, reflecting lower volumes of COVID-19 vaccinations and testing, partly offset by improvements in underlying U.S. pharmacy, lower incentive accruals, strong International growth, and improved profitability in U.S. Healthcare.

Adjusted EPS decreased 18% to $0.67, reflecting a 23.5% headwind from significantly lower COVID-19 vaccine and testing volumes, missing the consensus of $0.69.

Walgreens' U.S. retail pharmacy segment generated $27.66 billion in sales, up 3.7%. Comparable sales at individual locations rose 5.7%.

Total prescriptions filled in the quarter, including immunizations, decreased by 0.5% to 297 million, impacted by lower market growth due to a weaker respiratory season.

Guidance: Walgreens Boots Alliance forecasts FY24 adjusted EPS of $3.20-$3.50 compared to the consensus Of $3.73, and down from $3.98 in FY23.

The guidance reflects incremental cost savings across the business and accelerating profitability in U.S. Healthcare, more than offset by lower sale and leaseback contribution, a higher tax rate, and lower COVID-19 contribution.

It forecasts FY24 sales of $141 billion-$145 billion versus the consensus of $144.36 billion.

The company expects U.S. Healthcare adjusted EBITDA to be breakeven at the midpoint of the guidance range of ($50) to $50 million.

Price Action: WBA shares are up 1.37% at $22.91 during the premarket session on the last check Thursday.