Walgreens Earnings Report Drives Up Stock Price, Shows Promise

Walgreens stock is up today following an earning report that was positive overall depside a net loss.

Timothy St. John•Thursday, March 28, 2024•2 min read

For Walgreens Boots Alliance Inc. (WBA), the second fiscal quarter of 2024 was held back by a serious non-cash impairment charge.

That resulted in a net loss of $5.9 billion, but sales were up for the company by 6.3%. This allowed Walgreens to bring in $37.1 billion in sales, and the outlook for the next quarter is rosier.

Those sales figures are better than what was estimated, placing Walgreens on good footing moving forward. Despite the massive revenue loss, the company is doing well and is seeing a stock price increase of 2.1% compared to Wednesday.

Walgreens’ earnings per share are up 3.4%, which brings the price to $120, higher than the anticipated $0.8165.

Outlook for Walgreens

With the kind of numbers we are seeing from the quarterly report, it is surprising that the stock price jumped only the little that it did. This may be a stock that really takes off in the next couple of days or does incredible trading business for the next quarterly report. We would suggest watching it closely, and we anticipate that Walgreens stock will continue to shoot up throughout the year.

2024 could be an excellent year of growth for the company. The non-cash impairment is still holding the stock and the company’s revenue back, and the retail environment is tough at this time with a sluggish economy. Walgreens had to adjust its operating income due to slow retail sales, but if the economy picks up (as many indicators point to happening soon), then Walgreens could have an incredible third quarter.

That non-cash impairment is costing Walgreens $12.4 billion, and there is more to pay. This charge was a result of the Village Goodwill startup that connected doctors and their private practice to Walgreens. It failed spectacularly, and Walgreens is still recovering, but they can afford the large misstep as their sales numbers are still strong.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.