- Walgreens Boots reported an adjusted EPS of $0.51 for the first quarter, beating estimates of $0.38 but down from $0.66 year-over-year.
- Total sales increased by 7.5% year-over-year to $39.46 billion, surpassing forecasts of $37.34 billion.
- U.S. Retail Pharmacy sales rose by 6.6% year-over-year to $30.87 billion, exceeding expectations of $29.16 billion.
- U.S. Healthcare sales grew by 12% year-over-year, reaching $2.17 billion, which was higher than the estimated $2.09 billion.
- International sales saw a 10% increase year-over-year to $6.43 billion, beating the projection of $5.9 billion.
- Adjusted gross margin decreased to 17.3% from 18.7% year-over-year, slightly below the estimate of 17.5%.
- Adjusted gross profit was $6.81 billion, experiencing a slight decline of 0.6% year-over-year but still above the estimate of $6.5 billion.
- Adjusted operating income was $593 million, showing a 14% decline from the previous year but significantly ahead of the estimate of $417.4 million.
- The company reaffirmed its fiscal 2025 adjusted EPS guidance range of $1.40 to $1.80, despite predictions of $1.53.
- Challenges included lower U.S. retail sales, higher effective tax rates, and reduced contributions from sale-leaseback and Cencora earnings.
- Tim Wentworth, CEO, highlighted disciplined execution in stabilizing retail pharmacy, optimizing footprint, controlling costs, and improving cash flow.
Walgreens Boots Alliance on Smartkarma
Independent analysts on Smartkarma have been closely monitoring Walgreens Boots Alliance, a retail pharmacy giant, amidst significant developments. Baptista Research explores the potential buyout discussions between Walgreens and Sycamore Partners, a private equity firm. The reports suggest a bullish sentiment as Walgreens’ shares surged following news of the ongoing talks. This comes at a crucial time for Walgreens, facing challenges like margin pressures, store closures, and rising costs from pharmacy benefit managers.
In another report by Baptista Research, the focus shifts to Walgreens Boots Alliance‘s recent Fourth Quarter FY 2024 results and strategic maneuvers. The analysis delves into the company’s efforts towards capital discipline, store optimization, and cost-cutting initiatives. With a positive cash flow in the quarter, the analysts at Baptista Research aim to assess various factors influencing Walgreens’ stock price in the near term. Using a Discounted Cash Flow (DCF) methodology, they seek to provide an independent valuation of the company’s potential turnaround prospects.
A look at Walgreens Boots Alliance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
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, a leading retail drugstore operator, shows strength in value and dividend factors according to Smartkarma Smart Scores. With a top score in both categories, the company demonstrates solid financial fundamentals and a commitment to rewarding shareholders. However, the growth and resilience scores for Walgreens are lower, indicating some challenges in these areas. The company’s momentum score sits at a respectable level, reflecting positive market sentiment and potential for future growth.
Walgreens Boots Alliance, Inc., known for its wide range of prescription and non-prescription drugs, general goods, and health services, continues to position itself as a key player in the healthcare industry. While facing some growth and resilience issues, the company’s strong focus on value and dividends showcases its commitment to providing value to investors. With a decent momentum score, Walgreens shows potential for continued success in the long term despite some challenges along the way.
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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