Walgreens Boots Alliance Reports Strong Revenue and Earnings Growth, But Stock Faces Potential Underperformance
Walgreens Boots Alliance (WBA) reported a 10% increase in revenue for the quarter ended November 2023, with EPS of $0.66. The reported revenue was a surprise of +5.10% over the Zacks Consensus Estimate. While investors often focus on revenue and earnings changes year-over-year, other key metrics can provide a more accurate picture of a company’s financial health. In the just reported quarter, Walgreens saw a decrease in the number of locations, but strong comparable sales in the US Retail Pharmacy – Pharmacy segment. Revenues in the US Healthcare and International segments also saw positive growth compared to the year-ago quarter. Adjusted operating income for the US Retail Pharmacy and Healthcare segments also exceeded analyst estimates. The stock currently has a Zacks Rank #4 (Sell), indicating potential underperformance in the near term.
The S&P 500 and Nasdaq Composite closed lower on Thursday, extending their losing streak from the start of 2024. The Dow Jones Industrial Average, however, saw a slight increase thanks to strong performance from financial stocks and positive jobs data. This is the worst start to a year for the S&P 500 since 2015, as investors continue to take profits after a strong rally in the tech sector at the end of last year. Bank stocks have seen positive growth in 2024, with the S&P 500 financial index up 3.3%.
Walgreens Boots Alliance (WBA) will stick to its plan of raising rates three times this year, along with strong economic data, have helped lift bank stocks, with the S&P 500 financial index up 3.3 percent in 2024. The company’s strong revenue and earnings growth in the just reported quarter, along with positive performance in key metrics, is a promising sign for the company’s future. The stock currently has a Zacks Rank #4 (Sell), indicating potential underperformance in the near term. Investors should continue to monitor the market and make informed decisions based on thorough research and analysis.
Walgreens Boots Alliance (WBA) has reported strong revenue and earnings growth in the just reported quarter, with positive performance in key metrics. The stock currently has a Zacks Rank #4 (Sell), indicating potential underperformance in the near term.
