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Walgreens Stock Surges as Cost-Cutting Measures Boost StockWalgreens Boots Alliance (NASDAQ: NASDAQ:WBA ) saw its stock surge by more than 13% after announcing a major cost-cutting initiative, including the closure of 1,200 underperforming stores by 2027. The company’s fiscal fourth-quarter earnings exceeded Wall Street's expectations, which, along with these aggressive restructuring measures, contributed to investor optimism and the stock's sharp rise. This marks a significant turnaround for a company that has faced ongoing challenges in recent years, from declining pharmacy reimbursement rates to softer consumer spending and a bumpy transition into primary care. Earnings Overview Walgreens' fiscal fourth-quarter performance showed resilience amid a challenging environment. The company reported revenue of $37.55 billion, surpassing the analyst expectation of $35.76 billion, representing a 6% year-over-year increase. Adjusted earnings per share came in at 39 cents, exceeding the projected 36 cents. However, the company did report a net loss of $3 billion due to a valuation allowance, largely related to opioid settlement charges, which contrasts sharply with a loss of $180 million in the same period last year. The retail giant is navigating a "rocky fiscal 2024" with pressures from falling reimbursement rates and higher operational costs. To address these challenges, Walgreens has undertaken extensive cost-cutting efforts, including store closures, workforce reductions, and the integration of artificial intelligence to optimize its supply chain. The company successfully cut $1 billion in costs during the fiscal year, a substantial achievement that bolstered its U.S. retail pharmacy segment, according to CFO Manmohan Mahajan. These efforts helped Walgreens maintain steady growth across its key business segments, including a notable 7.1% year-over-year rise in U.S. healthcare revenue to $2.11 billion, partly driven by growth in its specialty pharmacy and primary care businesses. The decision to close 1,200 underperforming stores will further support the company’s financial health. Walgreens CEO Tim Wentworth noted that the closures will result in a healthier store base and will improve free cash flow while helping the company adapt to shifting consumer behavior. With 8,700 U.S. locations, 25% of which are unprofitable, the move to streamline operations is expected to be "immediately accretive" to adjusted earnings. Additionally, Walgreens (NASDAQ: NASDAQ:WBA ) reported growth in its international unit, which posted sales of $5.97 billion, a 3.2% year-over-year increase, beating analyst expectations of $5.81 billion. The company’s U.K.-based drugstore chain, Boots, played a key role in this growth, with sales increasing by 2.3%. Walgreens’ U.S. retail pharmacy sales also rose by 6.5% to $29.47 billion, a reflection of higher prescription drug prices and continued demand despite falling margins from reimbursement rate pressures. Technical Analysis From a technical standpoint, Walgreens’ stock is showing strong signs of recovery after a prolonged bearish trend. The stock is up 9.22% at the time of writing, and the relative strength index (RSI) has climbed to 62.48, indicating healthy momentum without yet crossing into overbought territory. For nearly a year, Walgreens (NASDAQ: NASDAQ:WBA ) has been trading in a wedge pattern, characterized by lower highs and lower lows, reflecting its struggles in the market. However, recent news and the surge in stock price have propelled NASDAQ:WBA to break above the upper trendline of this wedge, signaling a potential reversal. The regression analysis further supports this bullish outlook, showing that Walgreens (NASDAQ: NASDAQ:WBA ) is breaking out of its prolonged downtrend. The breakout is accompanied by a notable increase in trading volume, suggesting that the market has responded positively to the news of store closures and better-than-expected earnings. The next key level to watch is the stock's previous resistance zone, which, if breached, could lead to a more sustained upward movement. Outlook Walgreens (NASDAQ: NASDAQ:WBA ) is clearly undergoing a transformative period, with significant restructuring efforts aimed at streamlining operations and boosting profitability. Despite facing ongoing pressures from a challenging retail environment and falling pharmacy margins, the company’s aggressive cost-cutting, particularly the closure of 1,200 stores, is expected to be a major driver of future earnings growth. Its revenue growth, especially in the U.S. healthcare and international segments, provides further optimism for investors. While the company faces considerable challenges in the years ahead, its commitment to refocusing on profitability, combined with strategic initiatives like AI-driven supply chain optimizations and improved pharmacy benefit manager (PBM) negotiations, indicate that Walgreens is positioning itself for a stronger future. The stock's technical breakout from its long-term bearish pattern offers a compelling opportunity for investors looking for a turnaround play in the retail pharmacy sector. If Walgreens (NASDAQ: NASDAQ:WBA ) can continue this upward momentum and effectively navigate its cost-cutting initiatives, NASDAQ:WBA could see more sustained gains in the months ahead. Investors should keep an eye on upcoming earnings reports and management's progress on its store closure plan to gauge the long-term viability of this recovery.
NASDAQ:WBALong
by DEXWireNews
WBA Sing Trade UnderwayWBA seems to have completed the breakout of the Inverse HS bottoming and trend reversal pattern I discussed last week. If entry point was at close yesterday, gains are 6+% Take profits as you feel comfortable. Ultimate target upon completion of pattern yields a price target of approx. 10.50. If trend reversal is a long term chance of character move, reaching the 200DMA for a gain of 50-85% is not out of the question. Taking half positions off the table is not a bad idea. Please watch for details
NASDAQ:WBALong
by Commodity_TA_Plus
1
Walgreens Boots Alliance (WBA) is gearing up for a potent ...Walgreens Boots Alliance (WBA) is gearing up for a potential breakout, presenting an enticing opportunity for investors. Recent news indicates that Walgreens is restructuring its business model and focusing on cost-cutting measures, which could significantly enhance profitability. Additionally, the company's efforts to expand its healthcare services and improve in-store experiences align well with market trends, making it well-positioned for growth. As analysts project a possible 15% surge in the stock price, now may be the time to consider WBA as a solid investment. BOOOOOOOOOOOM...
NASDAQ:WBALong
by Maximus20000
WOW Walgreens! Why you DON'T Baghold!NASDAQ:WBA is a techable moment and I had to make a video today. I checked my watchlist of current and recent trades exited and saw that Walgreens was down -25% overnight! Horrible earnings is the "reason" but really the stock has been in an unabated downtrend for months. I tried to take a long off the 2009 low back in January but my rules had me GET OUT in April. I did not like taking a loss at the time (no one does) but it's moments like this in trading and investing that remind you in a good way (rather than painful way) why you follow your exit rules!
NASDAQ:WBA
by norok
9
WBA Walgreens Boots Alliance Options Ahead of EarningsIf you haven`t bought WBA before the previous earnings: Now analyzing the options chain and the chart patterns of WBA Walgreens Boots Alliance prior to the earnings report this week, I would consider purchasing the 17.50usd strike price Calls with an expiration date of 2024-7-19, for a premium of approximately $0.41. If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
NASDAQ:WBALong
by TopgOptions
1
Walgreens Boots Alliance Sees Mixed Results in Q2 Fiscal 2024Walgreens Boots Alliance ( NASDAQ:WBA ), a global leader in pharmacy-led health and well-being, has released its fiscal 2024 second-quarter results, showcasing both challenges and successes in a rapidly evolving market landscape. The financial report reveals a complex picture, with the company experiencing a substantial loss per share of $6.85 compared to earnings per share of $0.81 in the same period last year. This significant disparity stems primarily from a $5.8 billion non-cash impairment charge related to VillageMD goodwill. Adjusted earnings per share, however, increased modestly by 3.4 percent to $1.20, reflecting improved profitability in the U.S. Healthcare segment and a lower adjusted effective tax rate. Despite the loss, second-quarter sales saw a notable uptick of 6.3 percent year-over-year to $37.1 billion, with growth recorded across all segments. This increase, coupled with the achievement of positive adjusted EBITDA in the U.S. Healthcare division for the first time, underscores the company's resilience and ability to navigate challenging market conditions. Looking ahead, Walgreens Boots Alliance ( NASDAQ:WBA ) has adjusted its fiscal 2024 guidance, narrowing the adjusted EPS range to $3.20 to $3.35. This revision reflects a challenging retail environment in the U.S., as well as factors such as the early wind-down of the sale-leaseback program and lower earnings due to Cencora share sales. However, the company remains committed to executing its strategic initiatives and achieving $1 billion in cost savings this year. CEO Tim Wentworth expressed optimism about the future despite the current headwinds, emphasizing the importance of focusing on customer engagement and value creation. He highlighted the company's progress in achieving positive adjusted EBITDA in the U.S. Healthcare segment and its ongoing efforts to streamline operations and drive growth. Walgreens Boots Alliance's financial report provides valuable insights into the dynamics of the retail pharmacy industry and the company's strategic priorities in response to evolving market trends. As it continues to navigate challenges and capitalize on opportunities, stakeholders will be closely monitoring its performance and strategic execution in the quarters ahead. Technical Outlook NASDAQ:WBA is exhibiting a bullish symmetrical triangle pattern, suggesting potential upward momentum in the near term. With a moderate Relative Strength Index (RSI) of 50. NASDAQ:WBA is poised for a further surge in the near term.
NASDAQ:WBALong
by DEXWireNews
2
Navigating Walgreens' Strategic Pivot: A Deep Dive into $WBA In a bold move to fortify its financial position, Walgreens Boots Alliance ( NASDAQ:WBA ) recently announced a significant dividend cut, marking the end of a remarkable 47-year streak of dividend growth. Despite the unsettling news, the company's first-quarter results have exceeded expectations, showcasing resilience in a challenging consumer environment. Understanding the Numbers: NASDAQ:WBA 's first-quarter sales witnessed a commendable 10% increase to $36.7 billion, with substantial growth in U.S. retail pharmacy and international segments. Adjusted operating income, however, experienced a 33% decline, primarily attributed to softer U.S. retail market trends. CEO Tim Wentworth emphasized the importance of evaluating strategic options to enhance long-term shareholder value while addressing immediate concerns through cost-right-sizing and increased cash flow. Dividend Cut: End of an Era or a Prudent Move? The decision to slash the dividend by nearly 50% marks a pivotal moment in Walgreens' financial history. With a rich legacy of 91 years of consecutive dividend payments and a 47-year streak of annual increases, the company's move underscores a necessary shift in response to changing market dynamics. While the decision may disappoint income-seeking investors, it is seen as a wise move to bolster cash reserves for future growth and balance sheet strength. Financial Snapshot and Market Response: NASDAQ:WBA 's stock lost 30% of its value in the previous year, contrasting sharply with the Dow Jones Industrial Average's nearly 14% rise. The dividend cut, while a bitter pill for income investors, is expected to improve the company's financial profile. Analysts posit that the move will position Walgreens for a potential rebound, considering its undervalued status and the focus on sustaining a decent dividend yield. The stock's affordability, coupled with the recent dip, may make it an appealing prospect for those seeking a turnaround investment opportunity. Evaluating Growth Challenges: Walgreens' growth trajectory has encountered headwinds, evident in the deceleration of its dividend growth rate over recent years. While the company maintained a consistent payout in 2023, the growth rate slowed, reflecting the evolving dynamics of the healthcare and retail landscape. The decision to rein in the dividend growth, albeit difficult, aligns with a strategic shift towards bolstering financial resilience and ensuring sustained growth. Investment Outlook: In the wake of the dividend cut, NASDAQ:WBA 's stock presents an intriguing proposition for investors seeking a balance between potential capital appreciation and a decent dividend yield. The company's commitment to exploring strategic options and adapting to market challenges underscores a proactive approach to navigate the evolving landscape. Conclusion: Walgreens' recent strategic decisions, including a substantial dividend cut, reflect a commitment to ensuring long-term sustainability in the face of a challenging business environment. As the company recalibrates its financial strategy. While the path to recovery may pose challenges, the combination of an affordable entry point and the potential for enhanced financial strength positions NASDAQ:WBA as a good prospect for investors with a strategic, long-term or short term perspective.
NASDAQ:WBALong
by DEXWireNews
Wallgreens Long for 2024This morning I received a volatility alert on $NASDAQ:WBA. The stock had earnings today and the resulting price action was bearish down to a significant potential support level. The Trade The Weekly the Ichimoku 9-period (red line) shows that short term 50% level as it goes flat providing a Weekly entry point. The risk is that price makes another major low. In my trading toolbox I call this setup a "TS Recap." I discuss these during my Weekly Livestreams here on Tradingview. I was able to enter my position earlier this morning and price has responded favorably by the time of writing (fill before you shill). The Context Since November 30, 2023 NASDAQ:WBA has had a bullish trend off the recent major low. I call these type of moves "Impulse Moves" because they represent significant buying over a short period of time that have the potential to be the first move of a full trend reversal. I look to take them as trades (or long term positions entries) when they perform a pullback to their 50% Retracement. This is what it looks like on the Daily timeframe: If we go up to the Monthly we see that NASDAQ:WBA is doing this price action at historic, 2008 and 2000 lows. This is a significant point and worth the risk for a long with a time horizon to span 2024.
NASDAQ:WBALong
by norok
4
WBA Walgreens Boots Alliance Options Ahead of EarningsIf you haven`t sold WBA here: Then analyzing the options chain and the chart patterns of WBA Walgreens Boots Alliance prior to the earnings report this week, I would consider purchasing the 23usd strike price Calls with an expiration date of 2023-10-13, for a premium of approximately $0.54. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. Looking forward to read your opinion about it.
NASDAQ:WBALong
by TopgOptions
1
Buying Opportunities When the VIX JumpsInvesting or opening long positions when the TVC:VIX jumps can be a profitable strategy if done correctly, as it often signifies elevated market fear and potential undervaluation of assets. But first, let's figure out what TVC:VIX is! The Volatility Index, or TVC:VIX , is a real-time market index representing the market’s expectation of volatility over the next 30 days. Often referred to as the "fear gauge," a surge in the TVC:VIX usually signifies increased uncertainty, risk, and investor sentiment that the market will move sharply, either downward or upward. So, now let’s take a look at the chart! You probably remember how we opened a position at level 13, and now we have designated a profit zone, and now the price has come exactly to this zone and I have already closed the position, now that the TVC:VIX has grown, this creates a good opportunity to buy heavily oversold securities long. How to find oversold securities, you can use a screener and filter out securities with RSI < 20 or were less than 20 recently. It is important to consider the quality of securities so as not to buy paper that no longer plans to grow. There are some good securities that I've already bought: NYSE:DG , NASDAQ:DLTR , WBA. Managing Risk Investors should consider implementing risk management strategies, such as stop-loss orders and portfolio diversification, to protect against significant losses when the VIX is high. Maintaining a well-diversified portfolio and avoiding panic selling are also essential in navigating markets during increased volatility.
TVC:VIXLong
by bearishgreed_com
WBA - Walgreens Boots Alliance Inc, 1h📈 Market Update: Opportunity Alert! 🚀 Hey everyone! After thorough analysis, I've observed that many stocks are now heavily oversold. Using a strategy I've developed over the years, there's a significant indication that the probability of profit is high for those considering a long position on NASDAQ:WBA NASDAQ:DLTR NYSE:DG NYSE:M NASDAQ:ULCC 🚀 Remember, all investments come with risks, so always do your own research and consider your own financial situation, risk tolerance, and investment objectives. But, for those who've been waiting for an opportune moment, this might be a window of potential! #WBA #DLTR #DG #M #ULCC (Note: This post is intended for informational purposes only. Always consult with a financial advisor before making any investment decisions.)
NASDAQ:WBALong
by bearishgreed_com
WBA in a long trend down SHORTWBA is Walgreens. On the daily chart it is down about 50% from the highs of late 2019, the summer of 2021 and winter of 2021. WBA may be suffering from not keeping up with online mail-order prescription filling and online in general. Like others, it may be suffering from potential downside of litigation related to the opioid epidemic. Mark Cuban and his Cost Plus Drugs may be having an impact on WBA . Merely a reasonable conjecture on my part. WBA beat earnings for three years of quarters prior to this most recent one. Importantly, on the long-range volume profile WBA is below the POC line where most traders prefer to trade. It is even farther below the POC line of the near term volume profile. The other indicators show ongoing or even accelerating bearish momentum. I will short WBA in what I think will be a long-duration swing trade. I will look into put option contracts as well.
NASDAQ:WBAShort
by AwesomeAvani
1