Walgreens Boots Alliance (NASDAQ: WBA) shares trade over 7% lower in pre-market Tuesday after the company’s soft FQ3 results and slashed guidance disappointed investors.

Walgreens reported Q3 EPS of $1.00, missing the analyst estimate of $1.08. Revenue for the quarter came in at $35.4 billion, just ahead of the consensus estimate of $34.24B. The adjusted gross margin came in at 18.8%, again below the consensus of 20.4%.

"Significantly lower demand for COVID-related services, a more cautious and value-driven consumer, and a recently weaker respiratory season created margin pressures in the quarter,” said Chief Executive Officer Rosalind Brewer.

The revised full-year forecast now calls for EPS of $4.00-4.05 from the prior $4.45-4.65, reflecting “consumer and category conditions, lower COVID-19 contribution, and a more cautious macroeconomic forward view.”

Analysts were expecting full-year EPS of $4.46.

“Our revised guidance takes an appropriately cautious forward view in light of consumer spending uncertainty, while still demonstrating clear drivers of a return to operating growth next fiscal year,” Brewer added.

WBA shares were already down 16% year-to-date through Monday’s close.

By Senad Karaahmetovic