Walgreens Plans To Close 1,200 Stores, And Its Stock Is Moving Higher After Earnings -- MarketWatch

MarketWatch · 10/15 11:14

Walgreens Boots Alliance Inc. shares (WBA) are rising 8% in Tuesday's premarket trading after the company reported better-than-expected results for its latest quarter, while also announcing a three-year plan targeting more than 1,000 store closures. The company posted a fiscal fourth-quarter net loss of $3.0 billion, or $3.48 a share, compared with $180 million, or 21 cents a share, in the year-earlier period. The sizable loss included multiple non-cash charges. On an adjusted basis, Walgreens earned 39 cents a share, while analysts tracked by FactSet were modeling 36 cents a share. Walgreens' revenue rose 6% to $37.5 billion, while analysts were looking for $35.8 billion. For fiscal 2025, Walgreens models $1.40 to $1.80 in adjusted earnings per share, while the FactSet consensus was for $1.72. The company expects its U.S. healthcare business and international business to grow, while the U.S. retail pharmacy business is anticipated to decline. The company is also looking for $147 billion to $151 billion in fiscal 2025, sales, while analysts were modeling $147.6 billion. Walgreens plans to shutter roughly 1,200 stores over the next three years, with about 500 of those closures expected to take place in fiscal 2025. The company expects the move will prove immediately accretive to adjusted earnings per share and free cash flow.

-Emily Bary

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October 15, 2024 07:14 ET (11:14 GMT)