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]

For the quarter ended November 2024, Walgreens Boots Alliance (WBA) reported revenue of $39.46 billion, up 7.5% over the same period last year. EPS came in at $0.51, compared to $0.66 in the year-ago quarter.The reported revenue represents a surprise of +6.41% over the Zacks Consensus Estimate of $37.08 billion. With the consensus EPS estimate being $0.37, the EPS surprise was +37.84%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

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 ...

Key TakeawaysWalgreens shares jumped Friday morning after the retailer recorded better sales and adjusted profits than analysts had expected.Revenue rose from last year, while the company recorded a larger net loss than expected as it starts a turnaround plan that includes closing 1,200 stores over the next three years.The pharmacy retailer's stock was the worst-performing stock in the S&P 500 last year, losing over 60% of its value. Shares of Walgreens Boots Alliance (WBA) rose Friday morning after the pha ...

Stock Performance and Valuation - Walgreens Boots Alliance (WBA) stock is currently trading at $9 22, down 4 65% with a 52-week range of $8 08 to $25 63 [2] - The stock is trading at 6x earnings, indicating a deep-value opportunity with a high dividend yield of 10 85% [2] - The consensus price target is $12 58, suggesting a potential 35% upside from the current price [5] Insider and Institutional Activity - Insiders own a small fraction of the stock but have not sold shares since Q1 2024, with recent buying activity from two directors and the CFO [3] - Institutional ownership is nearly 70%, with four consecutive quarters of net buying in 2024, providing strong support for the stock [3] Analyst Sentiment and Outlook - Analyst sentiment is mixed, with 26% Sell ratings, 60% Hold ratings, and 13% Buy ratings among the 15 tracked analysts [5] - The consensus forecast predicts earnings contraction to bottom in 2024, stabilize in 2026, and return to growth thereafter [8] - There is potential for an upgrade cycle to begin in late 2025, with a bias towards upside sentiment [5] Dividend and Financial Health - The company has already cut its dividend, aiding the downdraft in early 2024, but the current payout ratio is sustainable at 65% of earnings [6] - With or without Boots in the portfolio, the dividend is unlikely to change, and the balance sheet will be strengthened by capital injections [6] Strategic Changes and Market Reaction - Walgreens is planning significant changes in 2025, including potential store closures and asset trimming, which have improved the long-term outlook [8] - Rumors of a debt-financed offer to sell the company emerged in late 2024, though industry insiders are skeptical about the deal closing [9] - The potential sale of Boots, which contributed only 15% of Q4 revenue, could allow the company to focus on its core U S retail and healthcare business [9] Technical Analysis and Market Interest - The stock formed a double-bottom in 2024, with support levels confirmed by two tests and a subsequent rise to a higher support level [10] - Trading volume increased significantly in the summers of 2023 and 2024, indicating strong market interest and a potential capitulation by retail traders [8] Industry Context and Competitive Position - Walgreens is positioned as a high-yield deep-value stock with headwinds but significant upside potential [2] - The company's strategic moves, including potential divestitures and store closures, are aimed at improving long-term growth prospects [8][9]

Financial Performance - First quarter loss per share was $0.31, compared to $0.08 in the year-ago quarter, with adjusted EPS decreasing by 23.4% to $0.51[2] - Net loss attributable to Walgreens Boots Alliance, Inc. (GAAP) was $265 million for Q1 2024, compared to $67 million in Q1 2023[27] - Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. (Non-GAAP) were $440 million for Q1 2024, down from $571 million in Q1 2023[27] - Diluted net loss per common share (GAAP) was $0.31 in Q1 2024, compared to $0.08 in Q1 2023[27] - Adjusted diluted net earnings per common share (Non-GAAP) were $0.51 in Q1 2024, down from $0.66 in Q1 2023[27] - Net loss for the three months ended November 30, 2024, was $605 million, compared to $278 million in the same period in 2023[56] - First quarter operating loss was $245 million compared to an operating loss of $39 million in the year-ago quarter[44] - Net loss in the first quarter was $265 million compared to a net loss of $67 million in the year-ago quarter[45] - Adjusted earnings per share (EPS) was $0.51 versus $0.66 in the year-ago quarter[42] Sales and Revenue - First quarter sales increased by 7.5% to $39.5 billion, with growth across all business segments[17] - Total sales for the three months ended November 30, 2024, were $39.459 billion, with U.S. Retail Pharmacy contributing $30.866 billion, International $6.425 billion, and U.S. Healthcare $2.172 billion[31] - Total sales for the three months ended November 30, 2023, were $36.707 billion, with U.S. Retail Pharmacy contributing $28.944 billion, International $5.832 billion, and U.S. Healthcare $1.931 billion[33] - First quarter sales increased 7.5% year-over-year to $39.5 billion, up 6.9% on a constant currency basis[42] - U.S. Retail Pharmacy segment sales increased 6.6% to $30.9 billion, with comparable sales up 8.5%[46] - International segment sales increased 10.2% to $6.4 billion, with a favorable currency impact of 3.6%[47] - U.S. Healthcare segment sales grew to $2.2 billion, with VillageMD sales up 9%, CareCentrix up 16%, and Shields up 30%[48] Pharmacy and Prescription Performance - Pharmacy sales increased by 10.4%, with comparable pharmacy sales up 12.7%, driven by higher branded drug inflation and prescription volume[3] - Total prescriptions filled in the quarter increased by 1.5% to 316.3 million, with comparable prescriptions excluding immunizations up 3.5%[3] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Operating Income and EBITDA - Operating loss improved to $325 million from $436 million in the prior year, with adjusted operating income turning positive at $25 million[5] - Adjusted EBITDA improved by $109 million to $70 million, driven by growth in VillageMD and Shields[5] - Adjusted operating income increased by 17.9% to $168 million, led by strong retail performance in Boots UK and growth in Germany[20] - Adjusted operating income for the three months ended November 30, 2024, was $593 million, with U.S. Retail Pharmacy contributing $441 million, International $168 million, and U.S. Healthcare $25 million[31] - Adjusted operating income for the three months ended November 30, 2023, was $687 million, with U.S. Retail Pharmacy contributing $694 million, International $142 million, and U.S. Healthcare a loss of $96 million[33] - Adjusted EBITDA for the U.S. Healthcare segment improved to $70 million in Q3 2024, compared to a loss of $39 million in the same period last year[35] Cash Flow and Financial Position - Net cash used for operating activities improved by $141 million to $140 million, with free cash flow improving by $363 million to negative $424 million[18] - Free cash flow was $(424) million compared to $(788) million in the year-ago quarter[39] - Net cash used for operating activities decreased to $140 million in 2024 from $281 million in 2023[56] - Additions to property, plant, and equipment decreased to $284 million in 2024 from $506 million in 2023[56] - Proceeds from debt were $3.229 billion in 2024, compared to $3.826 billion in 2023[56] - Payments of debt increased to $4.679 billion in 2024 from $3.776 billion in 2023[56] - Net cash used for financing activities was $1.685 billion in 2024, compared to net cash provided by financing activities of $186 million in 2023[56] - Net decrease in cash, cash equivalents, and restricted cash was $1.910 billion in 2024, compared to $10 million in 2023[56] Retail Performance - Retail sales decreased by 6.2%, with comparable retail sales down 4.6%, due to a weaker cough cold flu season and lower discretionary sales[19] - Boots UK comparable pharmacy sales increased by 10.9%, and retail sales grew by 8.1%, with Boots.com sales up 30%[4] Adjustments and Non-GAAP Measures - Total adjustments to operating loss were $838 million in Q1 2024, up from $726 million in Q1 2023[27] - Footprint optimization charges were $333 million in Q1 2024, primarily related to restructuring activities[27][28] - Acquisition-related amortization was $269 million in Q1 2024, compared to $275 million in Q1 2023[27][28] - Loss on certain non-hedging derivatives was $200 million in Q1 2024, down from $366 million in Q1 2023[27] - VillageMD debt amendment resulted in a $137 million pre-tax non-controlling interest benefit in Q1 2024[27][30] - The company does not provide a reconciliation for non-GAAP estimates to GAAP financial measures on a forward-looking basis due to inherent difficulties in forecasting[58] - Comparable sales, pharmacy sales, and retail sales for the International segment are presented on a constant currency basis, a non-GAAP financial measure[60] Gross Profit and Margins - Adjusted gross profit for the same period was $6.812 billion, with U.S. Retail Pharmacy at $5.251 billion, International at $1.303 billion, and U.S. Healthcare at $253 million[31] - Adjusted gross profit for the three months ended November 30, 2023, was $6.850 billion, with U.S. Retail Pharmacy at $5.493 billion, International at $1.211 billion, and U.S. Healthcare at $146 million[33] - Gross margin (GAAP) for U.S. Retail Pharmacy was 17.0%, International 20.3%, and U.S. Healthcare 11.0% for the three months ended November 30, 2024[31] - Gross margin (GAAP) for U.S. Retail Pharmacy was 18.8%, International 20.8%, and U.S. Healthcare 6.5% for the three months ended November 30, 2023[33] - Adjusted operating margin (Non-GAAP) for the three months ended November 30, 2024, was 1.2% for U.S. Retail Pharmacy, 2.6% for International, and 1.2% for U.S. Healthcare[31] Other Financial Metrics - Weighted average common shares outstanding, diluted were 865.6 million in Q1 2024, up from 864.0 million in Q1 2023[27] - Adjusted effective tax rate excluding adjusted equity earnings (loss) in Cencora was 28.0% compared to 24.7% in the year-ago quarter[38] - Equity earnings (loss) in Cencora (GAAP) was $(9) million compared to $42 million in the year-ago quarter[37] - Depreciation and amortization expenses increased to $625 million in 2024 from $616 million in 2023[56]

Walgreens Boots Alliance reported a $265 million loss in its fiscal first quarter ended November ... [+] 30, 2024, despite what the company chief executive said was “early progress” en route to a company turnaround that will “take time,” the company said January 10, 2025. In this photo, a sign sits in front of a Walgreens store on November 10, 2023 in Wheeling, Illinois. (Photo by Scott Olson/Getty Images)Getty ImagesWalgreens Boots Alliance Friday reported a $265 million quarterly loss while citing what th ...

Walgreens on Friday reported fiscal first-quarter earnings and revenue that topped expectations, as it shutters stores and cuts other costs to steer itself out of a rough spot.Here's what Walgreens reported for the three-month period ended Nov. 30 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earnings per share: 51 cents adjusted vs. 37 cents expectedRevenue: $39.46 billion vs. $37.36 billion expectedEven after the big beats, Walgreens maintained its fiscal 2025 adjuste ...

Key TakeawaysWalgreens is set to report earnings Friday morning. The pharmacy chain was the worst-performing stock in the S&P 500 last year, falling more than 60%.Analysts mostly rate Walgreens stock as a "hold," expecting it to advance about 8% from Wednesday's close below the average price target of $10.Friday's report comes after the company announced a turnaround plan in October that included closing 1,200 stores over the next three years. Walgreens Boots Alliance (WBA) is set to report fiscal first-qua ...