Walgreens Boots Alliance (NASDAQ: WBA) has confirmed the earnings release date for fiscal Q1 2022, which will be on Thursday, January 6, 2021, aftermarket open.
What to look for
Earnings: Stockearning’s Estimated EPS for Q1 2022 is expected to beat EPS of $1.17 reported in Q4 2021. In the fourth quarter, the company had a net income of $627 million or $0.72 per share, and the company earned $358 million or $0.41 per share from ongoing operations. Historical EPS performance shows that the company has in the past 12 quarters beaten estimates none times (75%) and missed estimates thrice (25%).
Revenue: The company reported sales of $34.26 billion, up from $30.37 billion a year ago. Online at stores sales increased 8.15 QoQ with consumers filling more prescriptions and receiving COVID-19 vaccinations. In addition, health and wellness products were up 14% YoY attributed to more at-home COVID-19 tests, vitamins, and over-the-counter medications for flu, cold, and coughs purchases.
Stock movement: Walgreen Boots Alliance shares have gained 3.3% since the company released its last quarter earnings. Interestingly, WBA shares have been DOWN 13 times out of the past 26 quarters. So, the historical price reaction suggests a 50% probability of the share price going DOWN once WBA reports its fiscal Q2 2022 earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
UBS analyst Kevin Caliendo raided his price target on the stock from $50 to $52 and maintained a “Hold” rating in Walgreen Boots Alliance. Caliendo believes that the company will have a strong Q1 attributed to "positive momentum" from the booster shots, indicating that he previously modeled around 28% in 2021 compared to 60.8 million administered so far.
Morgan Stanley analyst Ricky Goldwasser downgraded WBA to “Sell” from “Hold” and lowered his price target from $56 to $49. The analyst models for no EPS growth through FY23 at the company. Additionally, there is limited visibility into the company's emerging healthcare strategy, which makes the comparison with CVS health stark considering the latter can invest into future growth without cutting on earnings, C-suite expertise, and readiness to rationalize retail footprint relative to WBA's "status quo approach."
Also, Robert W. Baird analyst Eric Coldwell kept a "Buy" rating on WBA and set a price target of $68 on the stock. The analyst expects the company to post an EPS of $1.38 in Q4 2021. Lastly, Truist analyst David MacDonald raised his price target in Walgreens Boots Alliance from $52 to $56 and maintained a “hold” rating on the stock. The analyst expects the company to beat Q4 earnings and also noted that the move to dice into healthcare with Walgreens Health segment launch is equally a positive. Additionally, MacDonald adds that the company’s investment better positions WBA in major areas and should expedite long-term growth potential.
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