S&P 500   4,538.43
DOW   34,580.08
QQQ   383.13
S&P 500   4,538.43
DOW   34,580.08
QQQ   383.13
S&P 500   4,538.43
DOW   34,580.08
QQQ   383.13
S&P 500   4,538.43
DOW   34,580.08
QQQ   383.13

Walgreens Boots Alliance Lives Up To Expectations 

Thursday, July 1, 2021 | Thomas Hughes
Walgreens Boots Alliance Lives Up To Expectations 

The Reversal In Walgreens Boots Alliance Gains Momentum

Walgreens Boots Alliance (NASDAQ: WBA) is one of our best picks for value-minded dividend growth investors for many reasons. To start, the company is deep into a global rationalization that has it back in growth mode and on track for double-digit gains in the coming year. Add to that a deep value, a safe and growing dividend, and better-than-expected results, and the stage is set for a major, long-term rally

“This quarter’s results demonstrate continued momentum, and while challenges lie ahead, we are in a strong position to grow and innovate our core retail and pharmacy businesses for the future. We are accelerating our investments to advance our operational excellence, including technology innovations that support mass personalization, pharmacy of the future, and the next phase of growth in tech-enabled healthcare,” said Chief Executive Officer Rosalind Brewer.

Walgreens Boots Alliance Strategy Pays Off

Walgreens Boots Alliance had a great third quarter and one that enabled the company to increase its guidance. While the one-year and two-year comparisons for revenue are technically down, those comparisons don't reflect the impact of divestitures that have allowed the company to pay down its debt, pay for growth initiatives, and reposition itself for the future. With that taken into consideration, the $34.03 billion in net consolidated revenue is up 12.1% from the previous year and beat the consensus by $560 dollars or 170 basis points.

Revenue increases were driven by strength in all operating segments. Revenue from continuing operations grew about 12% with the US segment up 5.1% and the international segment up 75.8%. Within the US, comp sales were up 6.4% on an 8.4% gain in pharmacy and a 1.7% gain in retail sales. Pharmacy sales were, notably, positively impacted by COVID-19 vaccinations to the tune of 600 basis points. In the international segment, the 75.8% increase includes a 1700 basis point impact from favorable foreign exchange and the positive impact from the new joint venture in Germany. X-FX, International sales are up 58% with a strong showing from Boots. Sales at Boots are up 7% for pharmacy, 38.7% for retail, and 42.9% via eCommerce channels.

Moving down the report, the company experienced a significant improvement in margins that reversed a loss in the year-ago period. On the bottom line, the company's total earnings per share including discontinued operations were $1.38 compared to a loss of $1.95 last year while adjusted EPS increased 83.4% to $1.51 and EPS from continuing operations improved to $1.27 compared to a loss of $2.05. 

Guidance Drives Walgreens Boots Alliance Higher 

Walgreens didn't give formal guidance in the form of revenue or earnings target's but it did up its expectation for EPS growth. The company increased its target for EPS growth from mid to high-single digits to about 10% in fiscal 2021. That guidance assumes full-year EPS near $5.20 compared to the $4.74 consensus and fourth-quarter EPS of $1..22 compared to the expectation of $1.15.

Shares of Walgreens Boots Alliance are up 2% in early pre-market trading following the release of the Q3 earnings report. The move has price action above the short-term moving average where it appears to be confirming a buy signal and the continuation of a reversal that began late last year. 

Walgreens Boots Alliance Lives Up To Expectations 

Should you invest $1,000 in Walgreens Boots Alliance right now?

Before you consider Walgreens Boots Alliance, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Walgreens Boots Alliance wasn't on the list.

While Walgreens Boots Alliance currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Walgreens Boots Alliance (WBA)3.1$46.53+4.3%4.10%15.88Hold$55.36
Compare These Stocks  Add These Stocks to My Watchlist 


Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.