The earnings call reflects a mixed sentiment with notable achievements in cost reduction, positive cash flow, and growth in the International and U.S. Healthcare segments. However, these are offset by significant challenges, including a substantial EPS decline, U.S. Retail Pharmacy headwinds, and plans for extensive store closures. The company is focused on strategic initiatives to stabilize its operations and strengthen its balance sheet, but faces ongoing pressures from the consumer market and legal charges.

Company Guidance

During the Walgreens Boots Alliance fourth quarter 2024 earnings call, the company provided guidance on several financial and operational metrics. The company achieved its short-term goals, cutting costs by over $1 billion, reducing capital expenditure (CapEx) by over $700 million, and realizing over $600 million in benefits from working capital initiatives, contributing to a positive cash flow in the fourth quarter. The company plans to close approximately 1,200 underperforming stores over the next three years, with about 500 closures expected in fiscal 2025, aiming to improve cash contributions by approximately $100 million of AOI. For fiscal 2025, Walgreens anticipates realizing $500 million in working capital initiatives and $150 million in further CapEx reduction. The company also aims to monetize noncore assets, including VillageMD, to generate cash and reduce net debt, which was reduced by $1.9 billion in fiscal 2024. Adjusted EPS guidance for fiscal 2025 is set at $1.40 to $1.80, reflecting continued pressure on reimbursement rates, with approximately 80% of contract volume negotiated for the calendar year.

Cost Reduction Success

The company successfully cut costs by over $1 billion, reduced CapEx by over $700 million, and realized over $600 million in benefits from working capital initiatives.

Positive Cash Flow and Debt Reduction

Achieved positive cash flow in the fourth quarter and reduced net debt by $1.9 billion in fiscal 2024.

International Segment Growth

Total sales grew 3.7% year-over-year in the International segment, with Boots U.K. showing 6% growth in comp retail sales.

U.S. Healthcare Segment Performance

The U.S. Healthcare segment delivered $66 million in adjusted EBITDA, with sales of $2.1 billion growing 7% compared to the prior year quarter.

Working Capital and CapEx Reduction

Achieved $736 million in capital expenditure reductions and exceeded the target of $600 million in working capital benefits.

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Walgreens Boots Alliance (WBA) Earnings, Revenues Date & History

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WBA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 10, 2025	2025 (Q1)	0.38 / -	0.66	―	―	―
Oct 15, 2024	2024 (Q4)	0.36 / 0.39	0.67	-41.79% (-0.28)
Jun 27, 2024	2024 (Q3)	0.68 / 0.63	1	-37.00% (-0.37)
Mar 28, 2024	2024 (Q2)	0.82 / 1.20	1.16	3.45% (+0.04)	―
Jan 04, 2024	2024 (Q1)	0.62 / 0.66	1.16	-43.10% (-0.50)
Oct 12, 2023	2023 (Q4)	0.69 / 0.67	0.8	-16.25% (-0.13)
Jun 27, 2023	2023 (Q3)	1.07 / 1.00	0.96	4.17% (+0.04)
Mar 28, 2023	2023 (Q2)	1.10 / 1.16	1.59	-27.04% (-0.43)
Jan 05, 2023	2023 (Q1)	1.14 / 1.16	1.68	-30.95% (-0.52)
Oct 13, 2022	2022 (Q4)	0.77 / 0.80	1.17	-31.62% (-0.37)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WBA Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 15, 2024	$8.73	$10.11	+15.81%
Jun 27, 2024	$14.84	$11.55	-22.17%
Mar 28, 2024	$19.65	$20.28	+3.21%
Jan 04, 2024	$23.64	$22.42	-5.16%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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