Walgreens Boots Alliance (WBA) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Walgreens Boots Alliance (WBA) despite an increase in revenues, with actual results being crucial for stock price movement [1][3]. Earnings Expectations - The expected quarterly earnings per share (EPS) for Walgreens is $0.53, reflecting a year-over-year decrease of 55.8% [3]. - Revenues are projected to reach $37.92 billion, which is a 2.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.82% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - A positive Earnings ESP of +9.39% suggests that analysts are optimistic about Walgreens' earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Walgreens currently holds a Zacks Rank of 2, enhancing the likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Walgreens exceeded the expected EPS of $0.37 by delivering $0.51, resulting in a surprise of +37.84% [12]. - Over the past four quarters, Walgreens has beaten consensus EPS estimates three times [13]. Conclusion - While Walgreens is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [16].