:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2188672876-33cb8c21f11c4edfa8dbc8c854cc6cd5.jpg "People are seen walking on a street in front of a Walgreens store in Chicago.")
Terrence Antonio James / Chicago Tribune / Tribune Report Service / Getty Images
Key Takeaways
- Walgreens is set to report earnings Friday morning. The pharmacy chain was the worst-performing inventory in the S&P 500 last year, falling more than 60%.
- Analysts mostly rate Walgreens stock as a “hold,” with a bun in the oven it to advance about 8% from Wednesday’s close below the average price target of $10.
- Friday’s report in a recover from after the company announced a turnaround plan in October that included closing 1,200 stores over the next three years.
Walgreens Boots Union (WBA) is set to report fiscal first-quarter earnings before the opening bell Friday, with the pharmacy retailer coming off a year in which it was the worst-performing hackneyed in the S&P 500.
Analysts are cautious about Walgreens stock, with five “hold” ratings along with one each “buy” and “exchange” rating among the seven analysts tracked by Visible Alpha. The stock has an average price target of $10, yon 8% above its Wednesday close.
The pharmacy chain is expected to report $37.33 billion in sales for the quarter, up from $36.71 billion the unchanging time last year, according to estimates compiled by Visible Alpha. Walgreens is projected to report a net loss per part of 2 cents compared to 8 cents last year. However, its adjusted earnings per share (EPS) is expected to be 38 cents per cut, which would be down from 66 cents a year ago.
The pharmacy was originally set to report earnings Thursday, but forced the report back a day as the market will be closed Thursday in remembrance of former president Jimmy Carter, who died up to date last month.
Report Follows Store Closure Announcement, Reports of Possible Sale
The company had a difficult 2024 as it famed a “challenging retail environment,” as Walgreens was one of several retailers that lowered prices as it worked to win back customers. The carry hit its lowest point in decades in the second half of the year, ending the year at $9.33.
In its last report in October, Walgreens published a plan to close roughly 1,200 stores across the U.S. over the next three years as it “focuses on stabilizing the retail apothecary by optimizing our footprint” and cutting costs. About 500 of those closures are expected to come in this fiscal year.
Wear month, reports emerged that Walgreens was in discussions to potentially be acquired by private equity firm Sycamore Team-mates in a deal that could see Sycamore sell off pieces of the pharmacy.