Shares of retail pharmacy giant Walgreens Boots Alliance (NASDAQ:WBA) are under pressure today after its fourth-quarter EPS of $0.67 fell short of expectations by $0.02. On the other hand, revenue of $35.42 billion fared better than estimates by $580 million.
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The company’s fourth-quarter performance was affected by substantially lower COVID-19 vaccine sales and testing volumes. For the full Fiscal year 2023, though, WBA managed to grow its sales by 4.8% to $139.1 billion. Looking ahead to the full Fiscal year 2024, WBA expects adjusted EPS to land in the range of $3.20 to $3.50 amid a lower anticipated contribution from sale and leaseback and declining COVID-19 sales. Revenue for the year is expected to be in the range of $141 billion to $145 billion.
While the company declined to provide guidance beyond 2024 owing to macroeconomic challenges, it has planned cost reductions of at least $1 billion and tapered capital expenditures by about $600 million. The impacts of these initiatives are anticipated to begin in the second quarter of Fiscal 2024.
What Is the Price Target for WBA?
Overall, the Street has a Hold consensus rating on Walgreens. The average WBA price target of $26.88 implies a 19% potential upside. That’s after a 31% decline in the stock over the past year.
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