- Walgreens Boots’ 2024 adjusted EPS forecast is lower than estimates, with a projection of $3.20 to $3.50 per share, compared to the estimated $3.70.
- The company forecasts sales of $141 billion to $145 billion, slightly lower than the estimated $144.21 billion.
- Fourth quarter results show an adjusted EPS of 67c, slightly lower than the estimated 69c, and sales of $35.42 billion, marking a 9.2% increase year-on-year (y/y).
- US sales in the fourth quarter amounted to $27.67 billion, a 3.7% increase y/y, while international sales reached $5.78 billion, up 12% y/y.
- The adjusted gross margin was 18.6%, slightly lower than the previous year’s 20.1% and the estimated 18.9%.
- Walgreens Boots is not providing guidance beyond fiscal 2024 due to ongoing evaluation of macroeconomic trends and challenges.
- The company plans to reduce costs by at least $1 billion and reduce capital expenditures by about $600 million, according to the Interim CEO.
- Cost reductions are expected to impact 2024 figures, starting from the second quarter.
- The company predicts its 2024 US Healthcare adjusted EBITDA will break even at the midpoint of the guidance range of ($50) to $50 million.
- Lower sale and leaseback contributions, a higher tax rate, and lower COVID-19 contributions are expected to affect the 2024 adjusted EPS.
- Walgreens Boots forecasts its 2024 adjusted operating income to be between $3.4 billion and $3.7 billion.
- The company’s fourth-quarter adjusted EPS reflected a 23.5% headwind due to significantly lower COVID-19 vaccine and testing volumes.
Walgreens Boots Alliance on Smartkarma
According to independent investment research network Smartkarma, analyst coverage of Walgreens Boots Alliance has been largely positive. In a research report by Baptista Research, the company’s quarter was marked by solid sales growth and a return to adjusted earnings growth. The report also highlighted the launch of “Walgreens Health,” a technology-enabled care model that will give people in local communities more personalized health care.
In another research report by Baptista Research, Walgreens Boots Alliance produced a strong second quarter which happened to be an all-around beat. The report also noted that this quarter served as a turning point in their transition to the healthcare industry. In addition, Boots had a fantastic quarter in the international segment, achieving retail comp growth of 16% over the same period last year.
A look at Walgreens Boots Alliance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Walgreens Boots Alliance, Inc., is a premier retail drugstore that offers a wide variety of prescription and non-prescription drugs, general goods, health services, and fitness. According to Smartkarma Smart Scores, Walgreens Boots Alliance has a high long-term outlook, with a score of 4 for Value, 5 for Dividend, 2 for Growth, 2 for Resilience, and 3 for Momentum.
This indicates that Walgreens Boots Alliance is well-positioned for the future, with a focus on providing high value for customers, offering strong dividends, and maintaining a steady growth rate and resilience. The company’s momentum score of 3 suggests that it is continuing to make positive strides in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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