Today, the stock market as a whole performed decently, but Walgreens Boots Alliance (NASDAQ: WBA) stood out, achieving exceptional growth as its share price surged over 3% higher compared to the S&P 500 index’s modest 0.1% increase.
This outcome, in hindsight, aligns with the pharmacy chain operator’s release of promising quarterly results.
In the fiscal second quarter of 2024, Walgreens reported sales exceeding $37 billion, marking a 6% improvement over the same period in fiscal 2023.
These figures surpassed consensus analyst estimates, which had projected sales of $35.9 billion and adjusted per-share net income of $0.82.
Emphasizing its focus on cost savings and enhancing profitability, Walgreens outlined its goals for the year in its earnings report. The company aims to achieve $1 billion in cost savings and continues to evaluate its asset portfolio strategically.
As part of this strategy, it recorded a $5.8 billion impairment charge on its investment in VillageMD, prompting plans to close over 160 VillageMD outlets.
Moreover, Walgreens revised its full-year fiscal 2024 profitability guidance, now anticipating an adjusted profit range of $3.20 to $3.35 per share, down from the previous upper end of $3.50.
Management attributed this adjustment to a “challenging retail environment,” among other factors. Regarding investment in Walgreens Boots Alliance, investors should consider several factors.
Despite its strong performance, The Motley Fool Stock Advisor analyst team did not include Walgreens Boots Alliance among their top 10 stock recommendations.
They identified 10 other stocks with significant potential for impressive returns in the foreseeable future.
