After falling a long way, the pharmacy stock is trading at a surprisingly low valuation.Shares of Walgreens Boots Alliance (WBA -0.78%) were hammered about 20% lower on June 27. Investors were responding to a lowered forward outlook, and it isn't the first time in recent memory that the company's given shareholders disappointing news.When the market closed on June 27, shares of Walgreens stock were down by 60.5% from a peak they set last summer. At its beaten-down price, the stock offers a huge 8.2% dividen ...

After years of a downtrend in their price, shares of Walgreens Boots Alliance Inc. NASDAQ: WBA have thrown in the towel this time. In a single day, the stock is down over 25% in a sign that can’t be taken in any other way than a ‘run’ message. However, some remain hopeful about the stock recovering, but that would be severely disconnected from current fundamentals.Walgreens Boots Alliance TodayWBAWalgreens Boots Alliance$12.10 -0.09 (-0.74%) 52-Week Range$11.68▼$31.32Dividend Yield8.27%Price Target$20.64Add ...

Walgreens pharmacyGetty ImagesWalgreens is one of the most celebrated names in the retail pharmacy space, boasting innovation and convenience for its customers. However, in its latest earnings report, the company announced a tough financial environment and outlook, citing “a worse-than-expected U.S. consumer environment.”Without a doubt, inflation has struck Americans at all levels—from the rise in costs of groceries and food to skyrocketing housing payments and insurance rates. Consumer sentiment towards t ...

PCE inflation matches expectations … the “haves” versus “have nots” dynamic playing out for consumers and the stock market … why it all points toward “trading”Is the “good news” good enough?This morning, the Fed’s favorite inflation gauge, the Personal Consumption Expenditures Price Index (PCE) came in according to expectations.Here’s CNBC:The core personal consumption expenditures price index increased just a seasonally adjusted 0.1% for the month and was up 2.6% from a year ago, the latter number down 0.2 ...

Core Viewpoint - Walgreens Boots Alliance, Inc. is facing significant challenges, including declining stock prices and operational difficulties, despite some recent improvements in quarterly results [1][3][10]. Financial Performance - In Q3 2024, Walgreens Boots Alliance reported sales of $36,351 million, reflecting a 2.6% year-over-year growth, and an operating income of $111 million, a turnaround from an operating loss of $477 million in Q3 2023 [3][4]. - Diluted earnings per share increased from $0.14 in Q3 2023 to $0.40 in Q3 2024, marking a 186% year-over-year growth [3]. - Free cash flow improved from a negative $444 million to a positive $334 million in the same quarter [3]. Segment Analysis - The U.S. Retail Pharmacy segment generated $28,503 million in sales with a 2.3% year-over-year growth, but adjusted operating income declined 47.9% to $501 million [4][5]. - The International segment saw sales increase to $5,727 million, a 2.8% growth, but adjusted operating income fell 15.9% to $175 million [5][6]. - The U.S. Healthcare segment reported a 7.6% year-over-year sales growth to $2,125 million, but still faced an operating loss of $220 million [6]. Impairment and Balance Sheet - A significant non-cash goodwill impairment charge of $12.4 billion was recognized due to a downward revision in the long-term forecast from VillageMD management [7]. - Goodwill on the balance sheet decreased from $28,187 million to $15,821 million, indicating a substantial write-off [7]. - The company has limited cash reserves of $703 million, raising concerns about liquidity, especially with $1,506 million in short-term debt and $7,407 million in long-term debt [7][8]. Dividend Policy - Walgreens Boots Alliance cut its dividend to $0.25 per share, a nearly 50% reduction, losing its status as a dividend aristocrat [9]. - The current annual dividend of $1.00 results in a yield of 6.3%, but further cuts may be necessary depending on cash generation in the upcoming quarters [9]. Future Outlook - Management has lowered the adjusted EPS guidance for fiscal 2024 to a range of $2.80 to $2.95, reflecting ongoing challenges in the retail pharmacy business and a difficult consumer environment [10][11]. - Despite some signs of hope, the overall sentiment remains cautious, with the company needing to manage its turnaround effectively to regain profitability [13].

Key TakeawaysWalgreens Boots Alliance stock plummeted to a 27-year low on Thursday after the pharmacy chain and healthcare provider missed profit estimates and slashed its outlook amid weakening consumer demand.Walgreens shares started their long-term downtrend after toping out in August 2015, with the decline accelerating from July 2022 following a death cross, a bearish chart pattern that signals lower prices. Walgreens' share price may reclaim the $14 level near a 1997 price peak in the short-term due to ...

Walgreens Boots Alliance NASDAQ: WBA is a global leader in integrated healthcare, pharmacy, and retail. The company recently released its earnings report for the third quarter of 2024, raising questions about its ability to navigate a challenging market environment and achieve sustainable growth.Walgreens Boots Alliance TodayWBAWalgreens Boots Alliance$12.19 -3.47 (-22.16%) 52-Week Range$11.68▼$31.32Dividend Yield8.20%Price Target$23.07Add to WatchlistThe company’s expansive network of approximately 12,500 ...

Key TakeawaysThe S&P 500 edged 0.1% higher on Thursday, June 27, 2024, ahead of key inflation data set for release on Friday.Shares of server and data storage provider Super Micro Computer moved higher as the company aims to sustain its strong growth trajectory.Walgreens Boots Alliance shares tumbled after the pharmacy giant missed quarterly earnings estimates and announced it would close underperforming stores. Major U.S. equities indexes posted moderate gains on Thursday ahead of Friday's Personal Consump ...

FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) Delaware 47-1758322 108 Wilmot Road, Deerfield, Illinois 60015 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended May 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...

Management continues to lower expectations.Shares of pharmacy Walgreens Boots Alliance (WBA -23.85%) fell as much as 25.4% in trading on Thursday after reporting fiscal third-quarter 2024 results. Shares are still down 24.7% at 3 p.m. ET.Weaker than expected resultsManagement said revenue was up 2.6% to $36.4 billion, and net income nearly tripled to $344 million, or $0.40 per share. The big change was earnings guidance for the full year being cut from a range of $3.20 to $3.35 down to a range of $2.80 to $ ...