In the second quarter of 2017, Walgreen’s Walgreens, which had seen its revenues decline for years, is expected to record $7.9 billion in sales, according to a filing by analysts with Wells Fargo Securities.
“Wrenthames current financial position is not sustainable in the long-term,” Wells Fargo analysts wrote.
“Our primary focus is on the long term sustainability of the company, and we remain focused on achieving the longterm growth targets set in our most recent Annual Report.”
Wrenths current financial situation is not a sustainable one, and is likely to continue to be so for the foreseeable future, Wells Fargo stated.
The company has already missed its revenue targets for the past two years.
In 2016, Walgreen’s revenue was $2.1 billion, down from $3.3 billion in the previous year.
In 2017, Wrenthanams revenue will fall to $2 billion, a decline of $1 billion from the year before.
Walgreen reported that its profit and loss before interest, taxes, depreciation and amortization was $1.7 billion in Q3 2017, down $6 million from the previous quarter.
A decline of more than $6 billion in earnings would be a major blow for the embattled company.
Wrenthy’s sales have dropped in recent years, falling by almost 40% in the second half of 2017 compared to the same quarter a year earlier.
As the company has had a difficult time attracting new customers, the chain has struggled to increase profits, especially in its most important product category.
In the first three quarters of 2017 (the most recent period for which data is available), Wrentha’s revenue declined by more than 60% compared to Q2 2016.
Analysts expect Walgills revenue to decline by almost 10% in 2017, according a report by Jefferies analyst Mike Deutsch.
For Walgill’s Q1 2017 earnings report, Wigan’s stock was trading at $1,638, while Wrenthal’s stock dropped by nearly $1 to $1 on Friday.
Although Walgies recent losses have been relatively small, analysts are skeptical of the chain’s long-range outlook, which has been hampered by a slow recovery from a severe recession.
Wlanthams earnings per share was $0.66 in the fourth quarter of 2016, compared to $0,63 in the first quarter of the year.
The Walgins latest earnings report also reflected an increase in profits.
Analysts expected Walgys revenue to increase by 4% in Q1 and 3% in 2018, according the report.
Wall Street is pricing in an additional $15 billion in writedowns in the near-term, as Walgains revenue declines and the chain faces more stringent regulation from the Food and Drug Administration.
Investors are also questioning the chain about the quality of the products it sells.
Despite a steep drop in sales for the first few quarters, Walworths shares have been steadily rising in recent months.
In fact, Walwalis shares have increased 17% over the past three months, according data from the Chicago Board Options Exchange.
However, analysts believe the chain will have trouble maintaining momentum in the coming quarters as it seeks to regain customers and retain them for years to come.