Earnings Preview For Walgreens Boots Alliance

Walgreens Boots Alliance WBA is preparing to release its quarterly earnings on Tuesday, 2024-10-15. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Walgreens Boots Alliance to report an earnings per share (EPS) of $0.36.

The announcement from Walgreens Boots Alliance is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Overview of Past Earnings

The company's EPS missed by $0.08 in the last quarter, leading to a 0.78% drop in the share price on the following day.

Here's a look at Walgreens Boots Alliance's past performance and the resulting price change:

Performance of Walgreens Boots Alliance Shares

Shares of Walgreens Boots Alliance were trading at $9.21 as of October 11. Over the last 52-week period, shares are down 60.11%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on Walgreens Boots Alliance

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Walgreens Boots Alliance.

The consensus rating for Walgreens Boots Alliance is Underperform, derived from 6 analyst ratings. An average one-year price target of $10.42 implies a potential 13.14% upside.

Comparing Ratings with Competitors

The analysis below examines the analyst ratings and average 1-year price targets of and Walgreens Boots Alliance, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

Peer Analysis Summary

The peer analysis summary outlines pivotal metrics for and Walgreens Boots Alliance, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Walgreens Boots Alliance ranks at the bottom for Consensus rating among its peers. It is in the middle for Revenue Growth. The company is at the bottom for Gross Profit. In terms of Return on Equity, Walgreens Boots Alliance is at the bottom compared to its peers.

Delving into Walgreens Boots Alliance's Background

Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,500 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.

Breaking Down Walgreens Boots Alliance's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Walgreens Boots Alliance's revenue growth over a period of 3 months has been noteworthy. As of 31 May, 2024, the company achieved a revenue growth rate of approximately 2.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Walgreens Boots Alliance's net margin is impressive, surpassing industry averages. With a net margin of 0.95%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Walgreens Boots Alliance's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.54%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Walgreens Boots Alliance's ROA stands out, surpassing industry averages. With an impressive ROA of 0.41%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 2.4, Walgreens Boots Alliance faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Walgreens Boots Alliance visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.