Has Walgreens stock finally put in a bottom? It's been a very difficult year for Walgreens Boots Alliance (WBA -3.70%), but the stock was climbing higher following its fiscal fourth-quarter earnings report and the details of its store closure plan. Nonetheless, the stock is still down about 60% year to date. Let's look at Walgreens' most recent quarterly report, its store closure plan, and whether or not it's time to buy the stock. Earnings and store closures plan The issues that have been hampering Walgree ...

Boston, MA - October 15: Walgreens has announced that about 1,200 stores will be closing in the ... [+] United States. (Photo by Pat Greenhouse/The Boston Globe via Getty Images)Boston Globe via Getty ImagesWalgreens recently reported its Q4’24 results (fiscal ends in August), with revenue and earnings exceeding our expectations. The company reported revenue of $37.5 billion and adjusted earnings of $0.39 per share, compared to our estimates of $34.9 billion, and $0.38, respectively. Not only did Walgreens ...

Two months ago, I pitched a short on Walgreens Boots Alliance (NASDAQ: WBA ) on a 1-2 year time horizon, which surprisingly hit my price target in a much shorter time span. Since then, there has been littleI am a sophomore at USC (class of 2027) studying economics and accounting and aiming for an equity research-related career path, and Seeking Alpha serves as the place for me to put up all of my pitches. I conduct generalist equity research, but at the moment I am focusing on US based large-caps with 1-2 y ...

Yesterday, Walgreens Boots Alliance (WBA) shares jumped nearly 16% following the company’s better-than-expected earnings and sales results for the fourth quarter of fiscal 2024. Despite the company reporting a significant year-over-year decline in earnings, the growing investors’ optimism was backed by the company’s announcement of a strategic plan to close nearly 1200 stores over the next three years to improve the bottom-line scenario and cash flow.Over the past 30 days, this pharmacy retail powerhouse, d ...

It isn't easy to be positive on the struggling company's prospects.Walgreens Boots Alliance (WBA 15.78%) is shaping up to be one of the least popular stocks of 2024. With its share price down nearly 65% year to date, the pharmacy-chain operator isn't making it on many holiday wish lists.Yet the company still has believers. One of them is TD Cowen analyst Charles Rhyee, who recently reiterated his bullish take on the troubled company. Here's why he thinks Walgreens has a brighter future than many market play ...

Friedrich is the name given to our algorithm for analyzing companies that trade on the global stock markets. In creating Friedrich we concentrated on analyzing each company’s Main Street operations through various established ratios, along with our own unique ratios that we developed over the last 30 years. What we came up with is a final "Main Street" price per share based on Generally Accepted Accounting Principles (GAAP), which is a framework of accounting standards, rules and procedures defined by the p ...

Financial Performance and Sales - Walgreens Boots Alliance reported fiscal 2024 sales of $147.7 billion, with a presence in 8 countries and approximately 312,000 employees[11] - In fiscal 2024, the U.S. Retail Pharmacy segment generated $115.8 billion in sales, the International segment $23.6 billion, and the U.S. Healthcare segment $8.3 billion[24] - Pharmacy sales accounted for 77% of the U.S. Retail Pharmacy segment's total sales in fiscal 2024, up from 74% in the previous two fiscal years[33] - The International segment's sales composition for fiscal 2024 was 15% Pharmacy, 34% Retail, and 51% Wholesale[45] - The U.S. Healthcare segment's fiscal 2024 sales composition was 75% VillageMD, 7% Shields, and 17% CareCentrix[49] - The company's businesses are seasonal, with the second fiscal quarter (December, January, and February) typically generating higher retail sales and earnings[175] Retail and Pharmacy Operations - The company operates approximately 12,500 retail pharmacy locations across the U.S., Europe, and Latin America[12] - The U.S. Retail Pharmacy segment filled 796 million prescriptions (including vaccinations) in fiscal 2024, with adjusted 30-day equivalents reaching 1.2 billion[33] - Approximately 78% of the U.S. population lives within five miles of a Walgreens or Duane Reade retail pharmacy as of August 31, 2024[26] - The myWalgreens customer loyalty program had approximately 124 million members as of August 31, 2024[30] - Approximately 97% of the U.S. Retail Pharmacy segment's Pharmacy sales in fiscal 2024 were reimbursed by managed care organizations, governmental agencies, PBMs, and private insurance[33] - The International segment operated 3,688 retail stores and opticians locations as of August 31, 2024, with a strong omni-channel platform[40] - The Boots Advantage Card loyalty program had approximately 15 million active members as of August 31, 2024[42] - The Company's 90-day at retail prescription drug offering is typically at a lower margin than comparable 30-day prescriptions but helps increase business with chronic patients[38] - Specialty pharmacy represents a significant and growing portion of U.S. prescription drug spending, and the company's ability to access key drugs and penetrate key treatment categories is critical for future growth[122] - The company must continuously develop and maintain a relevant omni-channel experience to meet evolving customer expectations and compete effectively in the retail market[124] Healthcare Services and Expansion - The company is expanding its healthcare services, including primary, multi-specialty, and urgent care, across traditional clinic settings, patients' homes, and virtual platforms[12] - Walgreens Boots Alliance is focusing on value-based care, aiming to integrate pharmacy and medical care to improve health outcomes and reduce costs[22] - Medicare Part D plans and Medicaid public assistance programs contributed to approximately 29% and 5%, respectively, of the segment's fiscal 2024 sales[34] - The U.S. Healthcare segment faces risks related to payor contracts, including modifications or discontinuations, which could negatively impact business operations[89] - The company's healthcare businesses rely on value-based contracts with payors, which could lead to financial losses if medical costs exceed estimates[115] - The U.S. Healthcare segment faces significant risks from medical malpractice claims, which could result in substantial expenses and damage awards, potentially exceeding insurance coverage limits[111][112] - The U.S. Healthcare segment's revenue is highly dependent on Medicare and Medicare Advantage plans, with recent changes in Medicare reimbursement models negatively impacting the segment[112] Employee and Workforce Management - The Company employed approximately 312,000 persons globally as of August 31, 2024, with 245,000 based in the U.S. and 51,000 in the UK[61] - The company offers comprehensive benefits including healthcare coverage, insurance, digital well-being programs, and paid time off for U.S. employees[64] - The company scored 100% on the Disability Equality Index for disability inclusion in fiscal 2024[68] - The company provides global employee engagement surveys to measure and improve engagement[67] - The company offers training and development programs through Walgreens University in the U.S. and apprenticeship programs in the UK[66] - The company conducts bi-annual employee surveys to evaluate wellness offerings[64] - The company provides monthly health and safety incident reports to select executives[69] - The company's U.S. workforce racial, ethnic, and gender composition is disclosed through the EEO-1 report[68] - The company has a talent management process to identify and assess talent across the organization[66] - The company prohibits discrimination and racial profiling, with training programs to eliminate unconscious bias[68] - The company offers on-demand self-paced learning resources globally for all employees[66] Supply Chain and Operational Risks - Disruption in the global supply chain could negatively impact the company's ability to provide products and services, affecting financial performance[88] - The company relies on a single wholesaler for branded and generic pharmaceutical drugs, posing a supply chain risk[88] - The company's retail sales are impacted by competitive pricing actions, promotional offers, and customer demand for value and convenience[46] - The company's wholesale sales are influenced by government actions aimed at reducing prescription drug consumption and increasing generic drug utilization[46] - Supply chain disruptions, including those caused by health epidemics, labor disputes, natural disasters, or geopolitical conflicts, could adversely affect product availability and financial performance[132][133] - The company relies on a single wholesaler, Cencora, for branded and generic pharmaceutical products, and any operational or financial difficulties faced by Cencora could negatively impact the company's business[135][136] - Labor challenges, including difficulties in attracting and retaining qualified pharmacists, have reduced service quality and negatively impacted financial performance in the U.S. Retail Pharmacy segment[142] Financial Risks and Impairments - The company recorded $12.4 billion of non-cash impairment charges related to VillageMD goodwill in Q2 fiscal 2024[174] - The company recorded $332 million of non-cash impairment charges related to CareCentrix goodwill in Q4 fiscal 2024[174] - The company had $15.5 billion of goodwill and $13.0 billion of other intangible assets on its Consolidated Balance Sheets as of August 31, 2024[174] - Significant outstanding debt of approximately $9.5 billion as of August 31, 2024[167] - Quarterly dividend payment reduced by 48% in Q2 fiscal 2024 as part of capital allocation strategy[172] - Investments in non-controlled companies expose the company to operational and financial risks[155] - The company is evaluating strategic options for its investment in VillageMD, including potential sales or restructuring, due to ongoing cash requirements and operational challenges[152] - Potential future impairments may materially impact financial condition and results of operations[153] - Considering sale of other businesses or monetization opportunities, subject to global financial market conditions[153] Regulatory and Compliance Risks - The company is subject to evolving ESG and climate-related regulatory requirements, with potential challenges in meeting standards[89] - The company faces increased compliance costs due to evolving ESG and climate-related regulatory requirements, including the SEC's climate reporting rules and the EU's CSRD, which may impact financial performance[131] - The company is subject to risks from changes in public policy and regulatory environments, including potential reductions in governmental funding for healthcare services[181] - The company is involved in legal proceedings, including opioid-related litigation, and has incurred significant expenses to resolve these matters[184] - The company is subject to extensive regulation by national, state, and local government agencies, which could result in significant legal and financial exposure if compliance is not met[189] - The company recognized an additional $2.3 billion valuation allowance against certain U.S. and state deferred tax assets due to cumulative losses in the U.S., primarily related to opioid settlements reached in fiscal 2023[196] - The company is subject to a proposed 15% global minimum tax under the OECD Pillar Two, Global Anti-Base Erosion Rules, which could adversely affect its effective tax rate and financial condition[194] - The company faces risks related to product liability, recalls, and health and safety issues, including potential financial liability and reputational damage from defective or counterfeit products[193] - The company is exposed to risks from violations of anti-bribery, anti-corruption, and international trade laws, which could result in penalties, fines, and reputational harm[192] Cybersecurity and Data Privacy - Cybersecurity and data privacy risks could harm reputation and business operations[156][157][161][162][164] - Compliance with privacy and data protection laws may result in significant expenses and potential fines[160][161] - Payment-related risks could increase operating costs and expose the company to fraud or theft[165][166] - Reliance on third-party payment processors and potential system compromises could disrupt business operations[166] - The company's cybersecurity strategy includes a comprehensive Data Security Event Plan (DSEP) to manage incidents involving unauthorized access to sensitive data[208] - The company's Chief Information Security Officer (CISO) collaborates with Legal, Privacy, and Technology Risk teams to coordinate incident response and policy design[207] - The company's Technology, Risk, and Compliance (TRC) function ensures compliance with critical security-related regulatory requirements, including HIPAA and PCI-DSS[206] - The company's Information Security program is aligned with the National Institute of Standards and Technology Cybersecurity Framework to address current and emerging cybersecurity risks[205] Corporate Governance and Leadership - The company's certificate of incorporation and bylaws, along with Delaware law, may impede stockholder efforts to change the Board or facilitate a takeover[202] - Stefano Pessina, the Executive Chairman, holds approximately 17% of the company's outstanding common stock, giving him significant voting influence over stockholder matters[197] - Leadership transitions, including the integration of a new CEO and senior management team, may cause disruptions and divert attention from financial and operational goals[137][138] Environmental, Social, and Governance (ESG) - The company faces increasing interest in ESG-related values from employees, customers, and stockholders, and failure to meet ESG goals could negatively impact its reputation and stock price[128][129][130] - Climate change poses risks to the company's operations, including extreme weather events that could disrupt supply chains, damage facilities, and increase costs for utilities like natural gas and electricity[143] - The company is exposed to risks associated with foreign currency exchange rate fluctuations, with a significant proportion of net assets and income in non-U.S. dollar currencies[176] - The company may use foreign currency contracts or other derivative instruments to hedge foreign currency fluctuation risks, but these may not fully offset adverse financial effects[177] - The company operates defined benefit pension plans in the UK, which are sensitive to changes in financial markets, corporate bond yields, and longevity rates[178] Growth Strategy and Acquisitions - The company's growth strategy involves acquisitions and partnerships, such as VillageMD and Shields, but integration challenges and unanticipated costs could adversely impact financial performance[147][148] - The company's investment in Cencora, representing 10.2% of outstanding shares, is subject to market risks and restrictions, which could materially affect financial condition and results of operations[150] - The company is evaluating strategic options for its investment in VillageMD, including potential sales or restructuring, due to ongoing cash requirements and operational challenges[152] - The company's ability to maintain or open new store locations is challenged by local regulations, real estate costs, and changing demographics, which could adversely affect results of operations[139][140]

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) Q4 2024 Earnings Call Transcript October 15, 2024 8:30 AM ET Company Participants Tiffany Kanaga - VP of Global IR Tim Wentworth - CEO Manmohan Mahajan - Global CFO Mary Langowski - President, US Healthcare Conference Call Participants Lisa Gill - JPMorgan Ann Hynes - Mizuho Group George Hill - Deutsche Bank Charles Rhyee - TD Securities Eric Percher - Nephron Research Kevin Caliendo - UBS Elizabeth Anderson - Evercore ISI Michael Cherny - Leerink Partners Stephan ...

Walgreens Boots Alliance, Inc. (WBA) delivered adjusted earnings per share (EPS) of 39 cents in the fourth quarter of fiscal 2024, down 41.8% from the year-ago quarter’s figure (down 40.8% at constant exchange rate or CER). However, the figure topped the Zacks Consensus Estimate by 8.3%.GAAP loss per share for the fourth quarter was $3.48, wider than the year-ago quarter’s 21 cents loss.For the full year, adjusted EPS was $2.88, a 27.6% decline from fiscal 2023 (down 27.9% at CER). This exceeded the Zacks C ...

Walgreens Boots Alliance is undertaking a transformation focused on its retail pharmacy business in response to persistent challenges in the consumer market and pharmacy sector. As part of this strategy, the company plans to close approximately 1,200 underperforming stores in the next three years to streamline operations and increase profitability.A challenging consumer spending environment served as a main theme Tuesday (Oct. 15) during the company’s fourth-quarter earnings call.“The consumer may get stron ...