Earnings Alerts

Walgreens Boots Alliance (WBA) Earnings: FY Adjusted EPS Forecast Cut, Q3 Misses Estimates

  • Revised FY Adjusted EPS Forecast: Walgreens Boots has lowered its fiscal 2024 adjusted EPS forecast to $2.80 to $2.95 from a previous estimate of $3.20 to $3.35.
  • Third Quarter Adjusted EPS: The company’s adjusted EPS for the third quarter was $0.63, short of the $0.68 estimate.
  • Third Quarter Sales Figures:
    • Total Sales: $36.4 billion, beating the $35.81 billion estimate.
    • International Sales: $5.73 billion, up 2.8% year-over-year, meeting the $5.72 billion estimate.
    • US Retail Pharmacy Sales: $28.50 billion, up 2.3% year-over-year, exceeding the $28.04 billion estimate.
    • US Healthcare Sales: $2.13 billion, up 7.6% year-over-year, aligning with estimates.
  • Reasons for Lowered EPS Guidance: Walgreens Boots cited challenging pharmacy industry trends and a tougher-than-anticipated U.S. consumer environment as reasons for revising the fiscal 2024 adjusted EPS guidance down to $2.80 to $2.95.
  • Impact on Adjusted EPS: Adjusted EPS of $0.63 fell by 36.6% on a constant currency basis compared to the same quarter last year, influenced by lower sale-leaseback gains, a challenging U.S. retail environment, and recent pharmacy industry trends.

Walgreens Boots Alliance on Smartkarma

Analysts on Smartkarma are closely monitoring Walgreens Boots Alliance, providing valuable insights on the company’s performance and future prospects. Baptista Research, in their report “Walgreens Boots Alliance Inc.: Redefining Relationships & Creating Value with Payers! – Major Drivers,” highlights the company’s second-quarter operational results meeting expectations and the positive performance in both the U.S. Retail Pharmacy segment and internationally. The research delves into various factors affecting the company’s valuation using a Discounted Cash Flow methodology.

Travis Lundy, in the analysis “Walgreens Boots Alliance (WBA US) – How Do Dow Jones Deletes Do Historically?,” discusses Walgreens’ removal from the Dow Jones Industrial Average and its implications. Historically, deleted stocks outperform additions and the DJIA in the next six months. Lundy compares Walgreens to CVS and notes the upcoming stock split announcement by Walmart that could impact the index composition. The report also mentions the replacement of Walgreens by Amazon in the index, emphasizing the shifting dynamics in the market.


A look at Walgreens Boots Alliance Smart Scores

FactorScoreMagnitude
Value4
Dividend5
Growth2
Resilience2
Momentum3
OVERALL SMART SCORE3.2

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., known for its wide range of prescription and non-prescription drugs and general goods, has garnered varied Smart Scores reflecting different aspects of its performance. With a strong emphasis on dividend payouts, scoring a top mark of 5 in this category, the company signals its commitment to rewarding shareholders. Additionally, a solid score of 4 in the value category indicates that the company may be considered undervalued relative to its peers. However, challenges in growth and resilience, with scores of 2 in both areas, suggest potential areas for improvement. With momentum at 3, it hints at a moderate trend in its share price movement.

Looking ahead, investors evaluating Walgreens Boots Alliance may find assurance in the company’s consistent dividend payments and its perceived value in the market. However, the lower scores in growth and resilience call for a closer assessment of the company’s strategies to drive future expansion and enhance its ability to withstand market fluctuations. The moderate momentum score could indicate a stable but not rapidly appreciating stock price. As the company continues its retail drugstore operations and expands its health services, including pharmacy and disease management, the balance of these Smart Scores could play a crucial role in shaping the long-term outlook for Walgreens Boots Alliance.


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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