Walgreens Boots Alliance (WBA) stock is soaring Friday, up more than 20% to make it the best S&P 500 stock at last check, after the drugstore chain beat top- and bottom-line expectations for its fiscal 2025 first quarter and maintained its full-year profit forecast.
In the three months ended November 30, Walgreens' revenue increased 7.5% year over year to $39.5 billion, driven by growth across all business segments. Its earnings per share (EPS) declined 22.7% from the year-ago period to 51 cents.
"Our first-quarter results reflect our disciplined execution against our 2025 priorities: stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow and continuing to address reimbursement models," said Walgreens CEO Tim Wentworth in a statement. "While our turnaround will take time, our early progress reinforces our belief in a sustainable, retail pharmacy-led operating model."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $37.4 billion and earnings of 37 cents per share, according to CNBC.
Walgreens also maintained its full-year profit forecast, which calls for earnings per share in the range of $1.40 to $1.80.
Is Walgreens stock a buy, sell or hold?
Walgreens' troubles on the price charts have been well-documented. Indeed, heading into Friday's session, sharewere down more than 61% on a year-over-year basis. Unsurprisingly, Wall Street is on the sidelines when it comes to the consumer staples stock.
According to S&P Global Market Intelligence, the average analyst target price for WBA stock is $10.43, representing a discount of nearly 10% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm UBS Global Research is one of those with a Neutral (Hold) rating on the mid-cap stock, along with a $10 price target.
"We believe WBA's fundamentals remain challenged exiting [its] fiscal first quarter," wrote UBS Global Research analyst Kevin Caliendo in a January 5 note. "Pharmacy chain script growth has remained soft, flu season started later than last year, creating a difficult comparison for fiscal Q1, and retailer peers are calling out deal-seeking behavior by consumers and mixed commentary around holiday season sales expectations. However, this reflects more or less a continuation of the status quo over the past nine-plus months."
Related Content
- Earnings Calendar and Analysis for This Week
- Delta Stock Remains a Strong Buy After Earnings
- Amazon to Replace Walgreens in the Dow: Why This Matters
-
Test Out Your Retirement Before You Call It QuitsIt's not easy to take a retirement back. Before you make the plunge, test the waters with these tips.
-
Sling TV Launches Select Plan With Lower Price PointA lean new $19.99 bundle combines top news, sports and entertainment channels with 4K options and local feeds.
-
Bonds Pay in Good and Bad TimesBonds can act as a financial safety net through good times and bad. But different bonds carry different returns and risks, so do your homework before investing.
-
When You Need Capital Quickly, Think 'Ready, Set, Fund': A Financial Adviser's StrategyInvestors must be able to free up cash to meet short-term needs from time to time. This strategy will help you access capital without derailing your long-term goals.
-
I'm an Estate Planner: Moving Family Assets to a Safe Haven Abroad Could Be a Huge Headache for Your HeirsIn troubled times like these, wealthy clients may seek financial refuge outside of the U.S. But that could cause more tax and estate problems than it solves.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market TodayStocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.
-
A Timeline of Warren Buffett's Life and Berkshire HathawayBuffett was the face of Berkshire Hathaway for 60 years. Here's a timeline of how he built the sprawling holding company and its outperforming equity portfolio.
-
Powell Signals Rate Cuts in His Jackson Hole Speech. Here's What Wall Street is SayingIn his speech at the Jackson Hole symposium Friday, Fed Chair Jerome Powell said current conditions "may warrant" rate cuts.
-
Fall Is Tax Time? Yes! Act Now to Make Needed AdjustmentsReview your withholdings, contribute to tax-saving HSA and FSA accounts, manage a bonus' impact and adjust for major life events such as weddings and job changes.
-
Board Service in Retirement: The Best Time to Join a Board Is Before You RetireMany senior executives wait until retirement to take a seat on a corporate board. But making this career move early is a win-win for you and your current organization.
