Walgreens Boots Alliance (NASDAQ: WBA ) owns the well-known pharmacy chain Walgreens in the U.S. and Boots in the U.K. The past few years have been the most turbulent in its 122-year history. What was once called the Dividend Aristocrat has scrapped its dividendI'm a passionate investor from the Netherlands with 12 years of stock market experience. My articles usually contain a good overview of important investment criteria. A stock for my portfolio is of interest to me if the company has the following char ...

Walgreens Boots Alliance, Inc. (WBA) delivered adjusted earnings per share (EPS) of 63 cents in the second quarter of fiscal 2025, down 47.5% from the year-ago quarter’s figure (down 47.3% at constant exchange rate or CER). However, the figure topped the Zacks Consensus Estimate by 18.9%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.GAAP loss per share for the second quarter was $3.30, narrower than the year-ago quarter’s $6.85 loss.Walgreens Boots recorded total sales of $38.59 bil ...

Core Insights - Walgreens Boots Alliance (WBA) reported a 4.1% year-over-year increase in sales for Q2 fiscal 2025, reaching $38.6 billion, while its operating loss decreased from $13.2 billion to $5.6 billion [1][2] Financial Performance - The sales increase was attributed to cost management efforts and improvements in the U.S. Healthcare business, despite weaker performance in the U.S. Retail Pharmacy segment and legal settlements [4] - The company experienced higher branded drug inflation and prescription volume, but faced lower sales in discretionary categories such as beauty and general merchandise [4] Acquisition Details - WBA is in the process of being acquired by an entity affiliated with Sycamore Partners, with the merger expected to close in the fourth quarter, pending shareholder and regulatory approvals [5] - Following the acquisition, WBA will operate as a private company while maintaining its brand identity and headquarters in the Chicago area [5] Legal Issues - WBA agreed to pay $2.8 million to settle allegations from the U.S. Justice Department regarding inflated prices submitted to Medicaid programs in Massachusetts and Georgia for generic medications [6]

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For the quarter ended February 2025, Walgreens Boots Alliance (WBA) reported revenue of $38.59 billion, up 4.2% over the same period last year. EPS came in at $0.63, compared to $1.20 in the year-ago quarter.The reported revenue represents a surprise of +1.75% over the Zacks Consensus Estimate of $37.92 billion. With the consensus EPS estimate being $0.53, the EPS surprise was +18.87%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

Group 1 - Walgreens Boots Alliance (WBA) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $1.20 per share a year ago, representing an earnings surprise of 18.87% [1] - The company posted revenues of $38.59 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 1.75%, compared to $37.05 billion in the same quarter last year [2] - Walgreens shares have increased approximately 14.8% since the beginning of the year, contrasting with the S&P 500's decline of -13.9% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $36.92 billion, and for the current fiscal year, it is $1.61 on revenues of $151.51 billion [7] - The Zacks Industry Rank for Retail - Pharmacies and Drug Stores is currently in the top 2% of over 250 Zacks industries, indicating strong performance potential [8] - The estimate revisions trend for Walgreens is favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

Core Insights - Walgreens reported fiscal second-quarter earnings and revenue that exceeded expectations, driven by cost-cutting measures and preparations for a transition to private ownership [1][2] - The company is in the process of being taken private by Sycamore Partners, with the deal expected to close in the fourth quarter of this year [1] Financial Performance - Adjusted earnings per share were reported at 63 cents, surpassing the expected 53 cents [2] - Revenue for the three-month period ended February 28 was $38.59 billion, exceeding the anticipated $38 billion [2]

Sales Performance - Sales for the three months ended February 28, 2025 increased 0.6 percent to $6.1 billion, with a 4.1 percent increase on a constant currency basis [263]. - Sales for the six months ended February 28, 2025 increased 5.3 percent to $12.5 billion, with a 5.3 percent increase on a constant currency basis [272]. - Pharmacy sales decreased 6.7 percent in the three months ended February 28, 2025, with comparable pharmacy sales in constant currency increasing 3.6 percent [264]. - Pharmacy sales decreased 4.1 percent in the six months ended February 28, 2025, with comparable pharmacy sales in constant currency increasing 5.9 percent [273]. - Retail sales increased 1.1 percent for the three months ended February 28, 2025, with comparable retail sales in constant currency increasing 4.5 percent [265]. - Retail sales increased 5.1 percent for the six months ended February 28, 2025, with comparable retail sales in constant currency increasing 5.8 percent [274]. - Sales for the three months ended February 28, 2025 decreased by $23 million to $2.2 billion, with VillageMD sales down $101 million to $1.5 billion, while CareCentrix and Shields saw increases of 6.5% to $390 million and 29.7% to $183 million respectively [285]. - Sales for the six months ended February 28, 2025 increased by $218 million to $4.3 billion, with VillageMD sales up $24 million to $3.1 billion, and CareCentrix and Shields also showing significant growth [293]. Operating Income and Profitability - Operating income for the three months ended February 28, 2025 decreased 51.7 percent to $101 million, impacted by currency translation and cost inflation [269]. - Adjusted operating income for the three months ended February 28, 2025 decreased 4.7 percent to $234 million, reflecting cost inflation and technology investments [271]. - Operating income for the six months ended February 28, 2025 decreased 25.5 percent to $242 million, influenced by cost inflation and technology investments [278]. - Adjusted operating income for the six months ended February 28, 2025 increased 3.6 percent to $401 million, driven by strong retail performance and market growth [279]. - Gross profit for the three months ended February 28, 2025 was $346 million, an increase of $155 million compared to the same quarter last year, driven by higher contributions from VillageMD and growth at Shields [286]. - Gross profit for the six months ended February 28, 2025 was $585 million, an increase of $269 million compared to the year-ago period, driven by contributions from VillageMD and Shields [294]. - Adjusted operating income for the three months ended February 28, 2025 improved by $150 million to $117 million, driven by higher contributions from VillageMD and growth at Shields [291]. - Adjusted EBITDA for the three months ended February 28, 2025 was $158 million, an improvement of $140 million compared to the same quarter last year, reflecting growth at VillageMD and Shields [292]. - Adjusted operating income for the six months ended February 28, 2025 improved by $271 million to $142 million, reflecting better performance from VillageMD and Shields [297]. - Adjusted EBITDA for the six months ended February 28, 2025 was $228 million, an improvement of $250 million compared to the year-ago period, indicating strong operational performance [298]. Net Loss and Impairments - The net loss attributable to Walgreens Boots Alliance for the six months ended February 28, 2025, was $3,118 million, compared to a net loss of $5,975 million for the same period in 2024, indicating an improvement of 47.9% [311]. - The company recorded an impairment of goodwill, intangibles, and long-lived assets amounting to $5,343 million for the six months ended February 28, 2025, down from $13,090 million in the prior year, a reduction of 59.1% [311]. - Total adjustments to operating loss for the six months ended February 28, 2025, amounted to $7,190 million, compared to $14,797 million for the same period in 2024, a decrease of 51.5% [311]. - The company recorded pre-tax gains of $157 million related to the change in classification of its previously held equity method investment in BrightSpring [12]. - The Company had total operating lease obligations of $22.1 billion, with $2.4 billion classified as current [333]. - Total non-cash impairment charges for goodwill and long-lived assets were $5.4 billion and $5.7 billion for the three and six months ended February 28, 2025, respectively [9]. Cash Flow and Financing Activities - Cash, cash equivalents, and restricted cash were $1.2 billion as of February 28, 2025, down from $3.2 billion as of August 31, 2024 [324]. - The Company had outstanding total debt of $8.0 billion as of February 28, 2025, with $1.4 billion classified as current [330]. - Net cash used for operating activities improved to $339 million for the six months ended February 28, 2025, compared to $918 million for the same period in 2024 [339]. - Negative operating cash flows for the six months ended February 28, 2025 were primarily due to legal settlements totaling $1.1 billion [340]. - Net cash provided by investing activities was $342 million for the six months ended February 28, 2025, down from $902 million in the prior year [341]. - Total additions to property, plant, and equipment were $503 million for the six months ended February 28, 2025, compared to $858 million in the same period of 2024 [344]. - Net cash used for financing activities increased significantly to $2.0 billion for the six months ended February 28, 2025, compared to $127 million in the prior year [345]. - The Company suspended its cash dividend, which totaled $432 million in the six months ended February 28, 2025, down from $828 million in the same period of 2024 [350]. - As of February 28, 2025, the Company had repurchased $8.0 billion of its $10.0 billion stock repurchase program [351]. Strategic Initiatives and Outlook - The Company anticipates cash needs over the next several years, including litigation and debt refinancing, as part of its decision to suspend cash dividends [321]. - The Company is exploring strategic monetization of non-core assets to provide additional liquidity [325]. - The Company's long-term credit ratings were downgraded to BB- with a negative outlook by Standard & Poor's and Ba3 with a stable outlook by Moody's [355].

Financial Performance - Second quarter sales increased 4.1% year-over-year to $38.6 billion, with a 4.7% increase on a constant currency basis[5] - Adjusted earnings per share (EPS) decreased 47.3% to $0.63 compared to $1.20 in the year-ago quarter[11] - Net loss for the second quarter was $2.9 billion, a 51.7% decrease from a net loss of $5.9 billion in the year-ago quarter[9] - Operating loss for the second quarter was $5.6 billion, an improvement from a loss of $13.2 billion in the year-ago quarter[7] - The net loss attributable to Walgreens Boots Alliance for the three months ended February 28, 2025, was $2,853 million, a reduction from a net loss of $5,908 million in the same period last year, reflecting a decrease of 51.7%[51] - Net loss for the six months ended February 29, 2025, was $4,640 million, a significant improvement from a net loss of $12,600 million in the same period of 2024, representing a reduction of approximately 63.2%[55] - The diluted net loss per common share (GAAP) for the six months ended February 28, 2025, was $(3.61), compared to $(6.93) for the same period in 2024, indicating an improvement of 47.9%[68] Sales and Revenue - U.S. Retail Pharmacy segment sales increased 5.3% to $30.4 billion, with comparable sales up 8.2%[21] - International segment sales were $6.1 billion, a 0.6% increase, with a 4.1% increase on a constant currency basis[26] - For the three months ended February 28, 2025, Walgreens Boots Alliance reported sales of $38,588 million, an increase from $37,052 million for the same period in 2024, representing a growth of 4.1%[51] - Total sales for the three months ended February 28, 2025, were $38,588 million, compared to $37,052 million for the same period in 2024, representing a year-over-year increase of approximately 4.1%[73] - The U.S. Retail Pharmacy segment reported sales of $30,380 million for the three months ended February 28, 2025, compared to $28,861 million for the same period in 2024, marking an increase of about 5.3%[73] Cash Flow and Assets - Free cash flow was negative $418 million, a $192 million improvement compared to the year-ago quarter[12] - Cash flows from operating activities showed a net cash used of $339 million for the six months ended February 29, 2025, compared to $918 million for the same period in 2024, indicating a 63.1% improvement[55] - The company reported a net cash provided by investing activities of $342 million for the six months ended February 29, 2025, down from $902 million in the prior year, reflecting a decrease of 62.1%[55] - Total assets decreased to $70,216 million as of February 28, 2025, down from $81,037 million as of August 31, 2024, representing a decline of 13.4%[52] - Walgreens Boots Alliance's cash and cash equivalents decreased to $702 million as of February 28, 2025, down from $1,319 million as of August 31, 2024, a decline of 46.9%[52] Strategic Initiatives - The company is withdrawing fiscal 2025 guidance due to a pending acquisition by Sycamore Partners[3] - The merger with Sycamore Partners is expected to close in the fourth quarter of calendar year 2025, pending approvals[35] - The company aims to enhance its business strategies and is currently undergoing a strategic review, which includes potential mergers and acquisitions[37] - Walgreens Boots Alliance is focused on cost-saving initiatives and growth strategies, including the Footprint Optimization Program, to improve financial performance moving forward[37] Impairments and Charges - The company reported a goodwill impairment charge of $3,653 million for the three months ended February 28, 2025, consistent with the charge of $12,369 million in the same period last year[51] - The company incurred impairment of goodwill, intangibles, and long-lived assets of $5,343 million for the three months ended February 28, 2025, compared to $13,090 million for the same period in 2024, a reduction of 59.1%[67] - The company recognized impairment of goodwill, intangibles, and long-lived assets of $3,252 million for the three months ended February 28, 2025[75] Operating Performance - The company's gross profit for the six months ended February 28, 2025, was $13,714 million, slightly down from $13,811 million in the prior year, indicating a decrease of 0.7%[51] - The adjusted gross profit for the three months ended February 28, 2025, was $6,963 million, slightly down from $7,068 million in the same period of 2024, indicating a decrease of about 1.5%[73] - The adjusted operating income for the three months ended February 28, 2025, was $785 million, down from $900 million in the same period of 2024, reflecting a decline of approximately 12.8%[74] - U.S. Healthcare segment reported an operating loss of $3,304 million for the three months ended February 28, 2025, compared to a loss of $13,059 million for the same period in 2024[75] - Adjusted EBITDA for the U.S. Healthcare segment was $158 million for the three months ended February 28, 2025, up from $17 million in the same period last year[75] Other Financial Metrics - The company incurred acquisition-related amortization expenses of $250 million for the three months ended February 28, 2025, compared to $270 million for the same period in 2024[74] - The effective tax rate (GAAP) for the three months ended February 28, 2025, was 5.0%, compared to 6.0% for the same period in 2024[79] - Adjusted effective tax rate excluding adjusted equity earnings in Cencora was 27.7% for the three months ended February 28, 2025, compared to (29.4)% for the same period in 2024[79] - The company recognized a pre-tax non-controlling interest benefit due to the amendment of the VillageMD Secured Loan, which is not indicative of normal operating performance[72] - The company made incremental pension contributions of $379 million during the three months ended February 29, 2024, as part of a bulk annuity policy acquisition[80]

Walgreens Boots Alliance, Inc. WBA will release earnings results for the second quarter, before the opening bell on Tuesday, April 8.Analysts expect the company to report quarterly earnings at 53 cents per share, down from $1.2 per share in the year-ago period. According to data from Benzinga Pro, Walgreens projects quarterly revenue at $38.0 billion, compared to $37.05 billion a year earlier.On March 6, Walgreens Boots Alliance entered an agreement to be acquired by private equity firm Sycamore Partners.Wa ...