Core Viewpoint - Walgreens Boots Alliance is undergoing a long-term turnaround process, emphasizing the importance of sustainable, retail pharmacy-led operations and focusing on improving customer experience and financial stability [2][8]. Financial Performance - In Q1, Walgreens reported sales of $39.5 billion, a 7.5% increase year-over-year, but experienced a net loss of $265 million, up from a loss of $67 million the previous year due to higher operating losses [5]. - The U.S. retail pharmacy segment grew by 6.6%, driven by a 10.4% increase in pharmacy sales, while retail sales fell by 6.2% due to a weaker flu season and reduced discretionary spending [5]. - The international segment saw a growth of 10.2%, aided by a favorable currency impact of 3.6% [5]. Strategic Initiatives - The company is focusing on stabilizing its retail pharmacy, optimizing store footprint, and enhancing reimbursement models while elevating customer experience [2][6]. - Walgreens plans to close approximately 500 stores during fiscal year 2025, having already closed about 70 in Q1, with a goal of a healthier, smaller footprint [6]. - The company has introduced 60 owned brands in the first quarter as part of its strategy to become a trusted provider of private label merchandise [4]. Customer Experience Enhancements - Walgreens is implementing digital and virtual check-ins for pharmacy patients, set to launch in 100 stores, with virtual care currently available in 30 states [3]. - The company is revamping its analytics, omnichannel, and digital experiences to better meet customer needs and improve loyalty [3][7]. Long-term Focus - The company is committed to a multiyear process aimed at operational efficiency and customer loyalty, utilizing data and analytics to enhance decision-making and streamline operations [6][7]. - Walgreens acknowledges that while initial progress has been made, significant work remains to achieve its long-term turnaround goals [8].

Group 1 - Walgreens Boots Alliance, Inc. reported first quarter earnings of 51 cents per share, exceeding analysts' expectations of 37 cents [1] - Revenue for the quarter was $30.90 billion, surpassing the anticipated $29.10 billion [2] - The stock is experiencing upward momentum, leading to increased buying interest and potential for further price increases [1][2] Group 2 - The stock has encountered a resistance level at $11, where previous rallies have stalled in October and December [3] - When a stock reaches resistance, it can lead to a sell-off as sellers undercut each other to attract buyers [4] - A breakout occurs when buyers overpower sellers at the resistance level, potentially leading to a new uptrend for the stock [5]

Core Insights - Walgreens Boots Alliance (WBA) was one of the worst-performing stocks in 2024, dropping by 64% while the S&P 500 rose over 20% due to consumer spending challenges and poor performance in its primary care business [1] - The company reported better-than-expected results for fiscal 2025 Q1, leading to a 26% increase in stock price [2] - Revenue grew by 7.5% year-over-year across all business segments, with adjusted earnings of $0.51 per share, surpassing analyst expectations of $0.37 [3][4] Financial Performance - For the quarter ending November 30, Walgreens achieved 7.5% year-over-year revenue growth, with all segments (U.S. retail pharmacy, international, and U.S. healthcare) showing revenue increases [3] - Adjusted earnings per share were reported at $0.51, significantly higher than the expected $0.37 [3] Management Commentary - CEO Tim Wentworth highlighted disciplined execution of the company's 2025 priorities and controlling operating costs as key factors in the positive results [4] Future Outlook - Walgreens maintained its full-year adjusted earnings per share guidance of $1.40 to $1.80, indicating a valuation of approximately 7.2 times expected earnings at the midpoint [5]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4] Management Commentary on Operating Environment and Future Outlook - The company anticipates making projections and forward-looking statements based on current expectations, but actual results could differ materially due to various factors [4] Other Important Information - The conference call includes participation from key executives such as the CEO, Global CFO, and other senior leaders who will participate in the Q&A session [3] Q&A Session Summary - No specific questions or answers from the Q&A session are provided in the content [1][2][3][4]

Walgreens Boots Alliance Inc (NASDAQ:WBA) had a rough 2024. In fact, it was the worst performing stock on the S&P 500 Index (SPX) for the year, losing 64.3% in 12 months. This also marked the equity's third-straight losing year. WBA is kicking off this year with a bang, however. The shares were last seen up 24.8% at $11.50 today, after the pharmaceutical giant's better-than-expected fiscal first-quarter results. The company's turnaround plan will continue, and though Walgreens CEO Tim Wentworth said it will ...

Financial Performance - Sales increased by 7.5% to $39459 million, or 6.9% on a constant currency basis, compared to 1Q24[13] - Adjusted operating income decreased by 13.7% to $593 million, or 14.0% on a constant currency basis, compared to 1Q24[13] - Adjusted EPS decreased by 23.1% to $0.51, or 23.4% on a constant currency basis, compared to 1Q24[13] - The company is maintaining full-year 2025 adjusted EPS guidance of $1.40 - $1.80[10] Segment Performance - U S Retail Pharmacy sales increased by 6.6% to $30866 million, but adjusted operating income decreased by 36.4% to $441 million[16] - U S Retail comparable pharmacy sales increased by 12.7%, while total retail sales decreased by 6.2% and comparable retail sales decreased by 4.6%[19, 23] - International sales increased by 6.5% on a constant currency basis to $6425 million, with adjusted operating income increasing by 16.1% to $168 million[25] - Boots UK retail comparable sales increased by 8.1%, and Boots com sales grew by 23% on a constant currency basis, representing 22% of Boots total retail sales in 1Q[28, 29] - U S Healthcare sales increased by $241 million to $2172 million, with adjusted operating income increasing by $121 million to $25 million[31] Cash Flow and Capital Allocation - Free cash flow was $(424) million, a $363 million increase compared to 1Q24, impacted by decreased capital expenditures and higher adjusted operating income excluding sale-leaseback[34] - Capital expenditure decreased by $223 million year-over-year, and lease liability decreased by $652 million[11] - The company closed 67 U S stores in 1Q and finalized the closure schedule for the next ~450 stores[11]

Core Insights - Walgreens Boots Alliance (WBA) reported revenue of $39.46 billion for the quarter ended November 2024, reflecting a year-over-year increase of 7.5% and a surprise of +6.41% over the Zacks Consensus Estimate of $37.08 billion [1] - The earnings per share (EPS) for the quarter was $0.51, down from $0.66 in the same quarter last year, with an EPS surprise of +37.84% compared to the consensus estimate of $0.37 [1] Revenue Performance - U.S. Retail Pharmacy revenues reached $30.87 billion, exceeding the average estimate of $29.18 billion, marking a year-over-year increase of +6.6% [4] - U.S. Healthcare revenues were reported at $2.17 billion, surpassing the average estimate of $2.04 billion, with a year-over-year growth of +12.5% [4] - International revenues amounted to $6.43 billion, exceeding the estimated $5.91 billion, representing a +10.2% change compared to the previous year [4] Adjusted Operating Income - Adjusted operating income for U.S. Retail Pharmacy was $441 million, significantly higher than the average estimate of $291.48 million [4] - Adjusted operating income for International operations was reported at $168 million, slightly below the estimated $169.54 million [4] - U.S. Healthcare adjusted operating income was $25 million, exceeding the average estimate of $6.45 million [4] - Corporate and Other adjusted operating income was reported at -$41 million, better than the estimated -$50 million [4] Stock Performance - Walgreens shares have returned -5.2% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Walgreens Boots Alliance (WBA) came out with quarterly earnings of $0.51 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 37.84%. A quarter ago, it was expected that this largest U.S. drugstore chain would post earnings of $0.36 per share when it actually produced earnings of $0.39, delivering a surprise of 8.33%.Over the last ...

Key TakeawaysWalgreens shares jumped Friday morning after the retailer recorded better sales and adjusted profits than analysts had expected.Revenue rose from last year, while the company recorded a larger net loss than expected as it starts a turnaround plan that includes closing 1,200 stores over the next three years.The pharmacy retailer's stock was the worst-performing stock in the S&P 500 last year, losing over 60% of its value. Shares of Walgreens Boots Alliance (WBA) rose Friday morning after the pha ...

Stock Performance and Valuation - Walgreens Boots Alliance (WBA) stock is currently trading at $9 22, down 4 65% with a 52-week range of $8 08 to $25 63 [2] - The stock is trading at 6x earnings, indicating a deep-value opportunity with a high dividend yield of 10 85% [2] - The consensus price target is $12 58, suggesting a potential 35% upside from the current price [5] Insider and Institutional Activity - Insiders own a small fraction of the stock but have not sold shares since Q1 2024, with recent buying activity from two directors and the CFO [3] - Institutional ownership is nearly 70%, with four consecutive quarters of net buying in 2024, providing strong support for the stock [3] Analyst Sentiment and Outlook - Analyst sentiment is mixed, with 26% Sell ratings, 60% Hold ratings, and 13% Buy ratings among the 15 tracked analysts [5] - The consensus forecast predicts earnings contraction to bottom in 2024, stabilize in 2026, and return to growth thereafter [8] - There is potential for an upgrade cycle to begin in late 2025, with a bias towards upside sentiment [5] Dividend and Financial Health - The company has already cut its dividend, aiding the downdraft in early 2024, but the current payout ratio is sustainable at 65% of earnings [6] - With or without Boots in the portfolio, the dividend is unlikely to change, and the balance sheet will be strengthened by capital injections [6] Strategic Changes and Market Reaction - Walgreens is planning significant changes in 2025, including potential store closures and asset trimming, which have improved the long-term outlook [8] - Rumors of a debt-financed offer to sell the company emerged in late 2024, though industry insiders are skeptical about the deal closing [9] - The potential sale of Boots, which contributed only 15% of Q4 revenue, could allow the company to focus on its core U S retail and healthcare business [9] Technical Analysis and Market Interest - The stock formed a double-bottom in 2024, with support levels confirmed by two tests and a subsequent rise to a higher support level [10] - Trading volume increased significantly in the summers of 2023 and 2024, indicating strong market interest and a potential capitulation by retail traders [8] Industry Context and Competitive Position - Walgreens is positioned as a high-yield deep-value stock with headwinds but significant upside potential [2] - The company's strategic moves, including potential divestitures and store closures, are aimed at improving long-term growth prospects [8][9]