- Walgreens Boots has adjusted its full-year EPS forecast to a range of $3.20 to $3.35, down from the previous estimate of $3.20 to $3.50.
- The company’s second quarter results showed an adjusted EPS of $1.20, exceeding the estimated 82 cents.
- Sales for the quarter reached $37.05 billion, marking a 6.3% increase year-over-year and surpassing the estimated $35.86 billion.
- International sales amounted to $6.02 billion, outperforming the estimated $5.84 billion.
- The adjusted gross margin for the quarter remained steady at 19.1%, as estimated.
- The narrowed full-year adjusted EPS guidance reflects a challenging retail environment in the US, an early wind-down of the sale-leaseback program, and lower earnings due to Cencora share sales.
- This is offset by good performance in pharmacy services and a lower adjusted effective tax rate.
- The company still expects the full-year US Healthcare adjusted EBITDA to break even, falling within the guidance range of ($50) million to $50 million.
- Despite these challenges, the company remains confident in achieving its goal of $1 billion in cost savings this year, according to the CEO.
- The second quarter adjusted EPS reflects a lower adjusted effective tax rate and improved profitability in US Healthcare.
Walgreens Boots Alliance on Smartkarma
Walgreens Boots Alliance (WBA) was recently removed from the prestigious Dow Jones Industrial Average, and according to independent analysts on Smartkarma, this could be a positive sign for the company. Travis Lundy‘s research suggests that companies removed from the index tend to outperform those added in the next six months. Additionally, WBA is currently trading at a lower valuation compared to its competitor CVS. This news comes after Walmart’s announcement of a stock split, leading to speculation that WBA may be added back to the index in the future.
In separate research, Baptista Research highlights Walgreens Boots Alliance‘s strong performance in a challenging retail environment. The company exceeded revenue and earnings expectations, demonstrating effective cost management and progress in their healthcare initiatives. Despite facing macroeconomic challenges, WBA’s management remains confident in their strategic moves, including the launch of “Walgreens Health,” a personalized care model. This could be a major driver of future growth for the company, according to Baptista Research.
A look at Walgreens Boots Alliance Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.2 |
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 is a well-established retail drugstore that provides customers with a wide range of prescription and non-prescription drugs, as well as general merchandise. The company has received high scores in the Smartkarma Smart Scores, with perfect 5 out of 5 scores for value, dividend, and growth. This indicates a positive long-term outlook for the company, as it is considered to be performing well in these areas. Walgreens also offers various health services, such as primary and acute care, wellness, pharmacy and disease management services, and health and fitness. These services contribute to the company’s overall resilience, which has received a score of 2. With a momentum score of 4, Walgreens Boots Alliance is expected to continue its steady growth in the future.
According to the Smartkarma Smart Scores, Walgreens Boots Alliance has a promising future ahead. The company’s high scores in value, dividend, and growth show that it is a strong performer in the retail drugstore industry. With a score of 5 in value, Walgreens is considered to be undervalued, making it an attractive investment option for potential investors. The company’s perfect score of 5 in dividend also indicates that it is committed to providing its shareholders with a consistent and reliable source of income. However, Walgreens’ resilience score of 2 suggests that it may face some challenges in the future. Nevertheless, with a momentum score of 4, the company is expected to maintain its growth trajectory in the long run. Overall, Walgreens Boots Alliance is a solid and stable company with a positive outlook in the retail drugstore 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
