Deerfield, Illinois-based Walgreens Boots Alliance, Inc. (WBA), is an integrated healthcare, pharmacy, and retail company. With a market cap of $8.3 billion, Walgreens operates through the U.S. Retail Pharmacy, International, and U.S. Healthcare segments. The pharmaceutical retailer is expected to release its Q1 earnings before the market opens on Thursday, Jan. 9.
Ahead of the event, analysts expect Walgreens to report a profit of $0.37 per share, down 43.9% from $0.66 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three quarters over the past four quarters while missing the estimate on another occasion. On the bright side, its adjusted EPS for the last reported quarter beat the consensus estimates by 8.3%.
For fiscal 2025, analysts expect Walgreens to report an adjusted EPS of $1.52, down 47.2% from $2.88 in fiscal 2023.
Shares of Walgreens have plummeted 64.5% over the past year, substantially lagging behind the S&P 500 Index’s ($SPX) 23.8% gains and the Health Care Select Sector SPDR Fund’s (XLV) marginal returns on a YTD basis.
WBA shares jumped 15.8% on Oct. 15 after announcing its Q4 earnings report. The pharmacy retailer posted $37.5 billion in sales, surpassing analysts' expectations of $35.75 billion. Adjusted earnings per share came in at $0.39, also beating the consensus estimate. Investors were particularly encouraged by Walgreens' plan to close 1,200 stores over the next three years, including 500 in fiscal 2025, which is expected to boost adjusted earnings and free cash flow.
The consensus opinion on the WBA stock is neutral, with an overall “Hold” rating. Out of the 15 analysts covering the stock, two suggest “Strong Buy,” 10 recommend “Hold,” two advise “Moderate Sell,” and one advocates a “Strong Sell” rating.
The mean price target of $9.87 suggests a potential upside of 6.6% from current price levels.
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