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Walgreens Boots Alliance, Inc. (WBA), headquartered in Deerfield, Illinois, operates as a healthcare, pharmacy, and retail company. Valued at $9.7 billion by market cap, the company offers a wide variety of prescription and non-prescription drugs, as well as primary and acute care, wellness, pharmacy, and disease management services, and health and fitness. The retail pharmacy giant is expected to announce its fiscal second-quarter earnings for 2025 on Thursday, Apr. 3.
Ahead of the event, analysts expect WBA to report a profit of $0.53 per share on a diluted basis, down 55.8% from $1.20 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect WBA to report EPS of $1.61, down 44.1% from $2.88 in fiscal 2024. Its EPS is expected to decline 8.7% year over year to $1.47 in fiscal 2026.
WBA stock has considerably underperformed the S&P 500’s ($SPX) 7.4% gains over the past 52 weeks, with shares down 42.9% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 2.1% losses over the same time frame.
WBA's underperformance is due to Sycamore Partners taking the company private for $11.45 per share. The deal is fully financed and expected to close in the fourth quarter, with no further dividend payouts expected. Free cash flows are minimal, making any potential upside unlikely beyond the buyout price.
On Jan. 10, WBA shares closed up more than 27% after reporting its Q1 results. Its adjusted EPS of $0.51 beat Wall Street expectations of $0.37. The company’s revenue was $39.5 billion, topping Wall Street forecasts of $37.1 billion. WBA expects full-year adjusted EPS in the range of $1.40 to $1.80.
Analysts’ consensus opinion on WBA stock is cautious, with a “Hold” rating overall. Out of 14 analysts covering the stock, one advises a “Strong Buy” rating, 11 give a “Hold” rating, one suggests a “Moderate Sell” rating, and one recommends a “Strong Sell.” While WBA currently trades slightly above its mean price target of $11.15, the Street-high price target of $15 suggests an upside potential of 34.4%.
