Walgreens Boots Alliance Inc (NASDAQ: WBA) reported fourth-quarter fiscal 12 months 2024 gross sales of $37.55 billion on Tuesday.
That’s up 6% 12 months over 12 months (+6.1% on fixed forex). The numbers beat the consensus of $35.76 billion, reflecting gross sales progress throughout all segments.
Walgreens Boots Alliance introduced a footprint optimization program focusing on roughly 1,200 closures over the subsequent three years. This contains roughly 500 closures in fiscal 2025, which might be instantly accretive to adjusted EPS and free money stream.
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The corporate stated it exceeded fiscal 2024 targets for $1 billion in value financial savings, a $600 million discount in capital expenditures, and $500 million in working capital initiatives.
Truist Securities famous that Walgreens Boots Alliance completed the fiscal 12 months 2024 on a powerful notice, assembly administration’s expectations and exceeding projections for each income and earnings.
The fiscal 2025 steering displays optimism, aligning with the upper finish of Truist Securities’ and consensus forecasts.
Each worldwide and U.S. healthcare segments delivered strong performances regardless of ongoing challenges in shopper spending and pharmacy reimbursement pressures. Nevertheless, the outlook on reimbursement was constructive. Fourth-quarter money stream surpassed expectations and stays a important focus, whereas capital expenditures and dealing capital enhancements are encouraging.
Truist maintains the Maintain score, with a value goal of $10.
RBC Capital notes that Walgreens Boots Alliance has outlined its deliberate retailer closures by way of 2027, providing larger readability and decreasing the uncertainty across the larger finish of potential closures.
The analyst additionally highlights that Walgreens is investing in areas it anticipates will soak up prescriptions and foot site visitors from the closing shops.
Having already shuttered just a few hundred areas in fiscal 12 months 2024, the corporate has latest expertise managing affected person transitions and prescription volumes.
Evercore ISI maintains Walgreens Boots Alliance with an In-Line score and raises the value goal from $7.5 to $10.
Value Motion: WBA inventory is up 4.32% at $10.87 eventually test Wednesday.
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