Despite strong quarterly results, Walgreens was hit hard in early trading Thursday.
Shares of the drug store chain were off more than 6.5% as of 10:20 a.m. ET after initially surging.
The sell-off comes despite optimistic news from the company, which raised its forecast for the year and reported better-than-expected third quarter results. Walgreens Boots Alliance said it expects growth of 10% in adjusted earnings per share for the year compared to previous guidance of mid- to high-single digits.
Shares initially surged 3% in pre-market trading, but the dip seems to be related to concerns that the revenue associated with COVID-19 vaccines will fall off soon, as demand for vaccinations across America dips precipitously.
Continued pressure from new rivals, such as Amazon, may also be weighing on investors’ minds.
As part of its earnings, Walgreen focused on its turnaround plan, which includes plans to use automation to give pharmacists more time to answer customers questions and an increased use of digital tools, such as its app.
The company is also hoping to reduce spending over the next year to the tune of $2 billion.
“While challenges lie ahead, we are in a strong position to grow and innovate our core retail and pharmacy businesses for the future,” said CEO Rosalind Brewer in a statement. “We are accelerating our investments to advance our operational excellence, including technology innovations that support mass personalization, pharmacy of the future and the next phase of growth in tech-enabled healthcare.”
This story was originally featured on Fortune.com
