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]

Group 1 - The article discusses Walgreens Boots Alliance, Inc. (NASDAQ: WBA) and mentions that it has been four-and-a-half years since the last coverage, with a previous "Buy" recommendation issued in May 2020 [2] - The article highlights the services provided by the Haggerston BioHealth investing group, which includes catalysts for biotech investors, product sales forecasts, and detailed financial analyses for major pharmaceutical companies [2] - The author, Edmund Ingham, has extensive experience in biotech, healthcare, and pharma, having covered over 1,000 companies in detailed reports [2] Group 2 - The article emphasizes that past performance is not indicative of future results and that no specific investment recommendations are being made [4] - It clarifies that the analysts involved are third-party authors and may not be licensed or certified by any regulatory body [4]

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 ...

Financial Performance - Sales increased by 7.5% to $39459 million, or 6.9% on a constant currency basis, compared to 1Q24[13] - Adjusted operating income decreased by 13.7% to $593 million, or 14.0% on a constant currency basis, compared to 1Q24[13] - Adjusted EPS decreased by 23.1% to $0.51, or 23.4% on a constant currency basis, compared to 1Q24[13] - The company is maintaining full-year 2025 adjusted EPS guidance of $1.40 - $1.80[10] Segment Performance - U S Retail Pharmacy sales increased by 6.6% to $30866 million, but adjusted operating income decreased by 36.4% to $441 million[16] - U S Retail comparable pharmacy sales increased by 12.7%, while total retail sales decreased by 6.2% and comparable retail sales decreased by 4.6%[19, 23] - International sales increased by 6.5% on a constant currency basis to $6425 million, with adjusted operating income increasing by 16.1% to $168 million[25] - Boots UK retail comparable sales increased by 8.1%, and Boots com sales grew by 23% on a constant currency basis, representing 22% of Boots total retail sales in 1Q[28, 29] - U S Healthcare sales increased by $241 million to $2172 million, with adjusted operating income increasing by $121 million to $25 million[31] Cash Flow and Capital Allocation - Free cash flow was $(424) million, a $363 million increase compared to 1Q24, impacted by decreased capital expenditures and higher adjusted operating income excluding sale-leaseback[34] - Capital expenditure decreased by $223 million year-over-year, and lease liability decreased by $652 million[11] - The company closed 67 U S stores in 1Q and finalized the closure schedule for the next ~450 stores[11]

Core Insights - Walgreens Boots Alliance (WBA) reported revenue of $39.46 billion for the quarter ended November 2024, reflecting a year-over-year increase of 7.5% and a surprise of +6.41% over the Zacks Consensus Estimate of $37.08 billion [1] - The earnings per share (EPS) for the quarter was $0.51, down from $0.66 in the same quarter last year, with an EPS surprise of +37.84% compared to the consensus estimate of $0.37 [1] Revenue Performance - U.S. Retail Pharmacy revenues reached $30.87 billion, exceeding the average estimate of $29.18 billion, marking a year-over-year increase of +6.6% [4] - U.S. Healthcare revenues were reported at $2.17 billion, surpassing the average estimate of $2.04 billion, with a year-over-year growth of +12.5% [4] - International revenues amounted to $6.43 billion, exceeding the estimated $5.91 billion, representing a +10.2% change compared to the previous year [4] Adjusted Operating Income - Adjusted operating income for U.S. Retail Pharmacy was $441 million, significantly higher than the average estimate of $291.48 million [4] - Adjusted operating income for International operations was reported at $168 million, slightly below the estimated $169.54 million [4] - U.S. Healthcare adjusted operating income was $25 million, exceeding the average estimate of $6.45 million [4] - Corporate and Other adjusted operating income was reported at -$41 million, better than the estimated -$50 million [4] Stock Performance - Walgreens shares have returned -5.2% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Walgreens Boots Alliance (WBA) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.84%. A quarter ago, it was expected that this largest U.S. drugstore chain would post earnings of $0.36 per share when it actually produced earnings of $0.39, delivering a surprise of 8.33%.Over the last ...