Walgreens Boots Alliance Prepares for Key Earnings Report

Walgreens Boots Alliance, Inc. (WBA), based in Deerfield, Illinois, operates in the healthcare, pharmacy, and retail sectors. With a market capitalization of $9.7 billion, the company provides a wide range of prescription and non-prescription medications, primary care, wellness services, pharmacy operations, and disease management. WBA is set to announce its fiscal second-quarter earnings for 2025 on Thursday, April 3.

Analysts’ Expectations and EPS Projections

Before the earnings announcement, analysts anticipate that WBA will report earnings of $0.53 per share on a diluted basis. This figure marks a significant decrease of 55.8% compared to $1.20 per share in the same quarter last year. Historically, the company has exceeded consensus estimates in three of the last four quarters, but it did miss the forecast once.

For the entire fiscal year, analysts project WBA to report earnings per share (EPS) of $1.61, reflecting a decline of 44.1% from $2.88 in fiscal 2024. Furthermore, EPS is expected to decrease by 8.7% year-over-year to $1.47 in fiscal 2026.

Stock Performance Compared to Major Indices

Over the past 52 weeks, WBA Stock has significantly underperformed, showing a decline of 42.9%. In contrast, the S&P 500 ($SPX) has increased by 7.4% during the same period, and the Health Care Select Sector SPDR Fund (XLV) experienced minimal losses of 2.1%.

Impact of Recent Developments

This performance is largely attributed to Sycamore Partners’ decision to take the company private at a price of $11.45 per share. The transaction is fully financed and is expected to finalize in the fourth quarter, which eliminates the prospect of further dividend payouts. Current free cash flows are low, indicating limited potential for appreciation beyond the buyout price.

On January 10, WBA shares surged over 27% following the release of its Q1 results, where adjusted EPS of $0.51 surpassed Wall Street’s expectations of $0.37. The company generated revenue of $39.5 billion, which was also higher than the forecast of $37.1 billion. Looking ahead, WBA anticipates full-year adjusted EPS to fall between $1.40 and $1.80.

Analysts’ Consensus and Price Targets

The general sentiment among analysts regarding WBA Stock is cautious, reflected in an overall “Hold” rating. Among the 14 analysts monitoring the stock, one recommends a “Strong Buy,” 11 suggest a “Hold,” one indicates a “Moderate Sell,” and one advocates for a “Strong Sell.” Currently, WBA trades slightly above its average price target of $11.15, while the highest target of $15 indicates a potential upside of 34.4%.

On the date of publication,

Neha Panjwani

did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For additional information, please view the Barchart Disclosure Policy

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The views expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.