$WBA (+23.29%)

🔹 Adj EPS: $0.51 (Est. $0.38) 🟢

🔹 Revenue: $39.46B (Est. $37.34B) 🟢; UP +7.5% YoY

🔹 International Sales: $6.43B (Est. $5.9B) 🟢; UP +10.2% YoY

🔹 U.S. Retail Pharmacy Sales: $30.87B (Est. $29.16B) 🟢; UP +6.6% YoY

Guidance

🔹 FY 2025 Adjusted EPS: $1.40-$1.80 (Est. $1.53)🟢

Q1 Segment Performance

U.S. Retail Pharmacy

🔹 Sales: $30.87B; UP +6.6% YoY

🔹 Comparable Sales: UP +8.5% YoY

🔹 Pharmacy Sales: UP +10.4% YoY

🔹 Comparable Retail Sales: DOWN -4.6% YoY

International

🔹 Sales: $6.43B; UP +10.2% YoY (UP +6.5% on a constant currency basis)

🔹 Boots UK Comparable Pharmacy Sales: UP +10.9% YoY

🔹 Boots UK Comparable Retail Sales: UP +8.1% YoY

🔹 Boots. com Sales: UP +30% YoY

U.S. Healthcare

🔹 Sales: $2.17B; UP +12.5% YoY

🔹 Adjusted Operating Income: $25M (vs. Loss of $96M YoY) 🟢

🔹 Adjusted EBITDA: $70M (Improved from -$39M YoY) 🟢

Other Metrics:

🔹 Comparable Pharmacy Sales: UP +12.7% YoY

🔹 Adjusted Operating Income: $593M; DOWN -13.7% YoY

CEO Tim Wentworth's Commentary

🔸 “Our Q1 results reflect disciplined execution and progress on our strategic priorities, including stabilizing retail pharmacy and improving cash flow. While the turnaround will take time, early progress reaffirms our confidence in a sustainable, pharmacy-led operating model.”

WALGREENS $WBA (+23.29%) IN TALKS TO GO PRIVATE WITH SYCAMORE PARTNERS – WSJ

Walgreens $WBA is reportedly in advanced talks to sell itself to private equity firm Sycamore Partners in a deal that could close early next year.

Once valued at over $100B in 2015, Walgreens now has a market cap of just $7.5B after pressures on its pharmacy and retail businesses sent shares down ~70% YTD.

Sycamore, known for retail investments, may sell parts of Walgreens or bring in partners post-acquisition. This follows Walgreens' struggles with thin pharmacy margins, retail competition, and the fallout from its 2015 Boots acquisition.

The deal would mark a major shakeup for the 120-year-old company with 12,000+ stores across the U.S., Latin America, and Europe.

$WBA (+23.29%) | Walgreens Boots Alliance Q4'24 Earnings Highlights:

🔹 Adj EPS: $0.39 (Est. $0.36) 🟢; DOWN 41% YoY

🔹 Revenue: $37.55B (Est. $35.75B) 🟢; UP 6% YoY

🔹 Targeting ~1,200 Store Closures Over Next 3 Years

FY'25 Guidance:

🔹 Adjusted EPS: $1.40 - $1.80 (Est. $1.73)😕

🔹 Fiscal 2025 Revenue: $147B - $151B (Est. $146.9B) 🟢

🔹 Adjusted Operating Income: $1.6B - $2.0B

Q4 Segment Performance:

U.S. Retail Pharmacy:

🔸 Sales: $29.47B (Est. $27.48B) 🟢; UP 6.5% YoY

🔸 Comparable Pharmacy Sales: UP 11.7%

🔸 Comparable Retail Sales: DOWN 1.7%

🔸 Adjusted Operating Income: $220M; DOWN 60.4% YoY

International:

🔸 Sales: $5.97B (Est. $5.84B) 🟢; UP 3.2% YoY

🔸 Boots UK Comparable Pharmacy Sales: UP 10%

🔸 Boots UK Comparable Retail Sales: UP 6.2%

🔸 Adjusted Operating Income: $231M; DOWN 10.9% YoY

U.S. Healthcare:

🔸 Sales: $2.11B (Est. $2.15B) 🔴; UP 7.1% YoY

🔸 Adjusted Operating Income: $17M (improved from a loss of $83M YoY)

🔸 Adj EBITDA: $65M (improved by $94M YoY)

Strategic Actions:

🔸 Store Closures: Announced a footprint optimization program targeting approximately 1,200 store closures over the next three years, including about 500 closures in fiscal 2025. The closures are expected to be immediately accretive to adjusted EPS and free cash flow.

Other Q4 Metrics:

🔹 Adj Operating Income: $424M; DOWN 38% YoY

🔹 Adj Gross Margin: 16.9% (Est. 17.6%); DOWN from 18.6% YoY

Operational Highlights:

🔸 Cost Savings: Exceeded fiscal 2024 targets for $1B in cost savings, $600M reduction in capital expenditures, and $500M in working capital initiatives.

🔸 Free Cash Flow: $1.1B in Q4; increased by $537M YoY.

🔸 Net Debt Reduction: Fiscal 2024 net debt reduced by $1.9B; lease obligations reduced by $1.2B.

🔸 U.S. Healthcare Segment: Adjusted EBITDA improved to $65M, driven by cost discipline at VillageMD and growth from Shields.