Walgreens Boots Alliance (WBA, Financial) saw a solid 5% jump in premarket trading after delivering a stronger-than-expected fiscal Q4 earnings report. The company posted adjusted earnings per share of $0.39, beating the street's estimate of $0.36. Revenue climbed 6.1% across all segments, with U.S. Retail Pharmacy leading the charge with an 8.3% year-over-year growth. Even with the broader retail sector showing some cracks, Walgreens proved it's still a heavyweight in the space.
Now, here's where things get interesting: Walgreens is getting aggressive. The company just announced it's closing 1,200 stores over the next three years, with 500 of those closures hitting in fiscal 2025. Some might see this as a negative, but CEO Tim Wentworth is confident this streamlining is exactly what Walgreens needs. Cutting underperforming locations will sharpen margins, reduce overhead, and, in the company's words, be “immediately accretive” to earnings and free cash flow. This is a clear move to stabilize operations and focus on its stronger-performing assets.
Looking ahead, Walgreens laid out its fiscal 2025 guidance with an adjusted EPS range of $1.40 to $1.80. That's a big signal they're serious about this turnaround plan. After a rough year where the stock plummeted 66%, Walgreens is laser-focused on cost controls, cash flow improvements, and ramping up its U.S. healthcare segment. Investors are paying close attention now. With leadership confident about the path forward, there's real potential for sustainable growth on the horizon.
