Walgreens Stock Forecast 2025: Analysts Weigh In Ahead of Q1 Earnings Report

Key Insights on Walgreens Q1 2024 Earnings

• Walgreens Boots Alliance is scheduled to announce its fiscal first-quarter earnings before the market opens on Friday, following a difficult year where its stock declined over 60%, marking it the worst performer in the S&P 500.
• Most analysts maintain a 'hold' rating on Walgreens shares, anticipating an approximate 8% increase from the recent closing price, with an average price target near $10.
• Recent strategic moves include a major turnaround plan unveiled in October, involving the closure of around 1,200 stores across the United States over the next three years to streamline operations and reduce costs.

Walgreens Boots Alliance (WBA) is poised to release its Q1 2024 earnings report on Friday morning. The company has faced significant challenges, reflected in last year's stock performance where it experienced a steep decline exceeding 60%, positioning it as the lowest-performing stock within the S&P 500 index.

Analyst sentiment remains cautious yet optimistic with five analysts recommending a 'hold,' alongside one 'buy' and one 'sell' rating among seven tracked by Visible Alpha. The consensus price target stands at approximately $10, suggesting a potential 8% upside from Wednesday's closing price.

Revenue projections for the quarter estimate sales at $37.33 billion, up from $36.71 billion during the same period last year. While Walgreens is expected to report a slight net loss per share of 2 cents compared to an 8-cent loss last year, adjusted earnings per share (EPS) are forecasted to decline to 38 cents from 66 cents a year prior.

Originally scheduled for Thursday, the earnings release was postponed to Friday due to market closure honoring the late former President Jimmy Carter.

Strategic Adjustments and Potential Acquisition Discussions

Walgreens faced a tough retail environment in 2023, prompting the company to reduce prices in efforts to regain customer loyalty. The stock price reached a multi-decade low in the latter half of the year, closing at $9.33.

In October, Walgreens announced an ambitious plan to shutter approximately 1,200 stores nationwide over the next three years, aiming to stabilize its retail pharmacy footprint and improve profitability. Around 500 store closures are anticipated within the current fiscal year.

Additionally, recent reports indicate that Walgreens may be engaged in acquisition talks with private equity firm Sycamore Partners, potentially leading to a deal involving the divestiture of certain pharmacy assets.

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