Market Overview - Major U.S. equities indexes experienced a decline, with the S&P 500 dropping 1.5%, the Dow down 1.6%, and the Nasdaq also falling 1.6% as the market resumed trading after a day of mourning for former President Jimmy Carter [2][3] Employment Data Impact - The U.S. economy added 256,000 jobs in December, significantly surpassing economists' forecasts, which raised concerns about the Federal Reserve's ability to implement further interest rate cuts in 2025 [2] Company Performance - Constellation Brands (STZ) saw its shares plummet 17.1% after reporting lower-than-expected quarterly sales and reducing its annual forecast, citing inflationary pressures and changing consumer preferences [4] - PG&E (PCG) shares fell 10.8% due to ongoing wildfires in Southern California, with the company previously declaring Chapter 11 bankruptcy in 2019 related to fire damages [5] - ON Semiconductor (ON) shares decreased by 7.5% after Truist downgraded the stock from "buy" to "hold," expressing a cautious outlook despite management's belief in a revenue recovery [6] - Walgreens Boots Alliance (WBA) shares surged 27.6% following better-than-expected sales and adjusted profits for Q1 of fiscal 2025, indicating early progress in its turnaround plan [7] - Constellation Energy (CEG) shares increased by 25.2% after announcing the acquisition of Calpine, enhancing its presence in California and Texas and positioning it as the largest clean energy provider in the U.S. [8] - Delta Air Lines (DAL) shares rose 9% after the airline provided optimistic first-quarter profit guidance, anticipating strong travel demand [9]

Core Viewpoint - The improving retail pharmacy business of Walgreens Boots Alliance and comments from the CEO suggest that a buyout from private equity is unlikely in the near future [1][7]. Financial Performance - Walgreens reported a wider net loss in its fiscal first quarter compared to the previous year, but noted several operating improvements across its business segments [2]. - The company's stock price surged by over 25% following the earnings report, increasing its market value and making it less attractive for private equity buyout [4]. Strategic Initiatives - CEO Tim Wentworth highlighted that Walgreens maintained its script market share in U.S. pharmacy, showed strong returns in its international business, and exceeded expectations in its U.S. healthcare segment [4]. - The company is progressing on essential opportunities for its long-term turnaround, including a footprint optimization plan that involves significant store closures [5][6]. Market Outlook - Analysts believe Walgreens is on the path to recovery without the need for private equity assistance, with expectations for continued execution on its optimization strategy [5][6]. - The company plans to close approximately 450 stores in the full year, with 70 closures already mentioned in the quarter [6].

Sales Performance - Sales for the three months ended November 30, 2024 increased by 10.2% to $6.4 billion, with a favorable currency impact of 3.6 percentage points[189] - Pharmacy sales decreased by 1.5% in the three months ended November 30, 2024, but comparable pharmacy sales in constant currency increased by 8.3%[190] - Retail sales increased by 9.6% for the three months ended November 30, 2024, with a favorable currency impact of 5.1 percentage points[191] - Pharmaceutical wholesale sales increased by 14.2% for the three months ended November 30, 2024, with a favorable currency impact of 2.9 percentage points[192] - U.S. Healthcare segment sales increased by $241 million to $2.2 billion for the three months ended November 30, 2024, driven by growth in all businesses[203] Operating Income and EBITDA - Operating income for the three months ended November 30, 2024 increased by 21.4% to $141 million, with a favorable currency impact of 1.5 percentage points[195] - Adjusted operating income for the three months ended November 30, 2024 increased by 17.9% to $168 million, with a favorable currency impact of 1.8 percentage points[196] - Adjusted operating income for the U.S. Healthcare segment improved by $121 million to $25 million for the three months ended November 30, 2024[207] - Adjusted EBITDA for the U.S. Healthcare segment improved by $109 million to $70 million for the three months ended November 30, 2024[208] - U.S. Retail Pharmacy segment reported an operating income of $17 million for Q1 2025, compared to $297 million in Q1 2024[217] - Adjusted operating income for the U.S. Healthcare segment improved to $25 million in Q1 2025 from a loss of $96 million in Q1 2024[217] - Adjusted EBITDA for the U.S. Healthcare segment increased to $70 million in Q1 2025 from a loss of $39 million in Q1 2024[222] Financial Adjustments and Costs - Total adjustments to operating loss amounted to $838 million in Q1 2025, up from $726 million in Q1 2024[219] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. were $440 million in Q1 2025, down from $571 million in Q1 2024[219] - Adjusted diluted net earnings per common share were $0.51 in Q1 2025, compared to $0.66 in Q1 2024[221] - Footprint optimization costs were $333 million in Q1 2025, primarily related to restructuring activities[217][219] - Acquisition-related amortization costs were $269 million in Q1 2025, slightly down from $275 million in Q1 2024[217][219] - Acquisition and disposition-related costs were $104 million in Q1 2025, down from $163 million in Q1 2024[217][219] - Transformational cost management resulted in a net benefit of $15 million in Q1 2025, compared to a cost of $109 million in Q1 2024[217][219] - Total impairment charges for long-lived assets were $279 million in the three months ended November 30, 2024, compared to $162 million in the same period in 2023[8] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash decreased to $1.3 billion as of November 30, 2024, from $3.2 billion as of August 31, 2024[231] - Net cash used for operating activities decreased to $140 million in Q1 2025 from $281 million in Q1 2024, driven by lower opioid legal payments and higher operating income[245] - Net cash used for investing activities was $76 million in Q1 2025, compared to net cash provided by investing activities of $85 million in Q1 2024[247] - Net cash used for financing activities was $1.7 billion in Q1 2025, compared to net cash provided by financing activities of $186 million in Q1 2024[250] - Proceeds from debt were $3.2 billion in Q1 2025, down from $4.0 billion in Q1 2024, primarily from revolving credit facilities[251] - Payments of debt totaled $4.7 billion in Q1 2025, including $1.2 billion for 3.800% unsecured notes and $290 million for a senior unsecured term loan[253] - Cash dividends paid decreased to $216 million in Q1 2025 from $415 million in Q1 2024[255] - The company has repurchased $8.0 billion of its common stock under the June 2018 stock repurchase program as of November 30, 2024[256] - The company expects to fund its liquidity needs through cash flow from operations, existing credit facilities, and monetization of investments and other assets[230] Debt and Credit Ratings - The company had outstanding total debt of $8.1 billion as of November 30, 2024, with $446 million classified as current[235] - The company reduced its outstanding lease liability by $652 million during the three months ended November 30, 2024[238] - The company has an aggregate borrowing capacity of $5.8 billion under committed revolving credit facilities, expiring in fiscal 2026 and 2027[236] - Credit ratings as of January 9, 2025: Moody's Ba3 (Stable outlook), S&P BB- (Stable outlook)[258] - Long-term credit ratings were downgraded to BB (S&P) and Ba3 (Moody's) in fiscal 2024, impacting borrowing costs and access to capital markets[260] - The company's credit ratings significantly reduce its ability to issue commercial paper and may increase the cost of new financing[260] Legal and Pension Liabilities - The company accrued a total liability of $6.6 billion related to opioid-related claims and litigation settlements as of November 30, 2024[239] - The company made approximately $435 million in contributions to the Boots Pension Plan and estimates remaining contributions of $410 million to $480 million by the end of fiscal 2026[240] Capital Expenditures - Capital expenditure decreased to $284 million in Q1 2025 from $506 million in Q1 2024, driven by reduced spending on U.S. Retail Pharmacy and VillageMD projects[249] Critical Accounting Estimates - Critical accounting estimates include business combinations, leases, goodwill impairment, and long-lived assets impairment[263]

If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth . Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. I hope to see you there.It has been four-and-a-half years since I last covered Walgreens Boots Alliance, Inc. (NASDAQ: WBA ). I issued a “Buy” recommendation in May 2020, and it is safe to say tha ...

Core Viewpoint - Walgreens Boots Alliance is undergoing a long-term turnaround process, emphasizing the importance of sustainable, retail pharmacy-led operations and focusing on improving customer experience and financial stability [2][8]. Financial Performance - In Q1, Walgreens reported sales of $39.5 billion, a 7.5% increase year-over-year, but experienced a net loss of $265 million, up from a loss of $67 million the previous year due to higher operating losses [5]. - The U.S. retail pharmacy segment grew by 6.6%, driven by a 10.4% increase in pharmacy sales, while retail sales fell by 6.2% due to a weaker flu season and reduced discretionary spending [5]. - The international segment saw a growth of 10.2%, aided by a favorable currency impact of 3.6% [5]. Strategic Initiatives - The company is focusing on stabilizing its retail pharmacy, optimizing store footprint, and enhancing reimbursement models while elevating customer experience [2][6]. - Walgreens plans to close approximately 500 stores during fiscal year 2025, having already closed about 70 in Q1, with a goal of a healthier, smaller footprint [6]. - The company has introduced 60 owned brands in the first quarter as part of its strategy to become a trusted provider of private label merchandise [4]. Customer Experience Enhancements - Walgreens is implementing digital and virtual check-ins for pharmacy patients, set to launch in 100 stores, with virtual care currently available in 30 states [3]. - The company is revamping its analytics, omnichannel, and digital experiences to better meet customer needs and improve loyalty [3][7]. Long-term Focus - The company is committed to a multiyear process aimed at operational efficiency and customer loyalty, utilizing data and analytics to enhance decision-making and streamline operations [6][7]. - Walgreens acknowledges that while initial progress has been made, significant work remains to achieve its long-term turnaround goals [8].

Group 1 - Walgreens Boots Alliance, Inc. reported first quarter earnings of 51 cents per share, exceeding analysts' expectations of 37 cents [1] - Revenue for the quarter was $30.90 billion, surpassing the anticipated $29.10 billion [2] - The stock is experiencing upward momentum, leading to increased buying interest and potential for further price increases [1][2] Group 2 - The stock has encountered a resistance level at $11, where previous rallies have stalled in October and December [3] - When a stock reaches resistance, it can lead to a sell-off as sellers undercut each other to attract buyers [4] - A breakout occurs when buyers overpower sellers at the resistance level, potentially leading to a new uptrend for the stock [5]

Core Insights - Walgreens Boots Alliance (WBA) was one of the worst-performing stocks in 2024, dropping by 64% while the S&P 500 rose over 20% due to consumer spending challenges and poor performance in its primary care business [1] - The company reported better-than-expected results for fiscal 2025 Q1, leading to a 26% increase in stock price [2] - Revenue grew by 7.5% year-over-year across all business segments, with adjusted earnings of $0.51 per share, surpassing analyst expectations of $0.37 [3][4] Financial Performance - For the quarter ending November 30, Walgreens achieved 7.5% year-over-year revenue growth, with all segments (U.S. retail pharmacy, international, and U.S. healthcare) showing revenue increases [3] - Adjusted earnings per share were reported at $0.51, significantly higher than the expected $0.37 [3] Management Commentary - CEO Tim Wentworth highlighted disciplined execution of the company's 2025 priorities and controlling operating costs as key factors in the positive results [4] Future Outlook - Walgreens maintained its full-year adjusted earnings per share guidance of $1.40 to $1.80, indicating a valuation of approximately 7.2 times expected earnings at the midpoint [5]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4] Management Commentary on Operating Environment and Future Outlook - The company anticipates making projections and forward-looking statements based on current expectations, but actual results could differ materially due to various factors [4] Other Important Information - The conference call includes participation from key executives such as the CEO, Global CFO, and other senior leaders who will participate in the Q&A session [3] Q&A Session Summary - No specific questions or answers from the Q&A session are provided in the content [1][2][3][4]

Walgreens Boots Alliance Inc (NASDAQ:WBA) had a rough 2024. In fact, it was the worst performing stock on the S&P 500 Index (SPX) for the year, losing 64.3% in 12 months. This also marked the equity's third-straight losing year. WBA is kicking off this year with a bang, however. The shares were last seen up 24.8% at $11.50 today, after the pharmaceutical giant's better-than-expected fiscal first-quarter results. The company's turnaround plan will continue, and though Walgreens CEO Tim Wentworth said it will ...

First Quarter Fiscal 2025 Results January 10, 2025 © 2025 Walgreens Boots Alliance, Inc. All rights reserved. Safe Harbor and Non-GAAP Cautionary Note Regarding Forward-Looking Statements: All statements in this presentation that are not historical are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These include, without limitation, estimates of and goals for future operating, financial and tax performance and results, including ...