On May 26, 2023, Walgreens Boots Alliance, Inc. announced its plans to reduce its corporate workforce by 10%, which equates to 504 employees being laid off. However, the layoffs will not affect workers based at stores, micro-fulfillment centers, or call centers.
The company is undergoing a transformation to become a consumer-centric healthcare company. As part of this transformation, Walgreens is adding primary-care centers to U.S. locations and collaborating with health insurers. In 2022, the company acquired Summit Health-City MD, a specialty and urgent care provider, for $8.9 billion to drive profit in the U.S. healthcare segment.
Despite the layoffs, Walgreens reported Q2 FY23 sales growth of 3.3% Y/Y to $34.9 billion in March, up 4.5% on a constant currency basis, beating the consensus of $33.53 billion. Adjusted EPS reached $1.16, unchanged from Q1 FY23, beating the consensus of $1.10. However, adjusted operating income was $1.2 billion, down 25.4% on a constant currency basis, reflecting lower COVID-19 vaccinations and testing volumes.
Walgreens is also dealing with fallout from opioid-related settlements and striving to become a healthcare destination to compete with rivals CVS Health and Amazon.
Walgreens Boots Alliance (WBA) Stock Performance and Analysis for May 26, 2023
On May 26, 2023, Walgreens Boots Alliance (WBA) opened at $29.79, fluctuated throughout the day within a range of $29.48 to $30.00, and closed slightly lower than the previous day’s close at $29.97. The total volume of shares traded was 232,660, significantly lower than the average volume of 6,744,893 shares traded over the past three months. WBA’s market capitalization was $27.0 billion. WBA had a positive earnings growth rate of 95.45% last year, but this year’s growth rate was -10.67%, and the projected earnings growth rate for the next five years is +1.46%. Revenue growth was only 0.15% last year. The price-to-earnings (P/E) ratio for WBA was not available, but the price-to-sales ratio was 0.23, and the price-to-book ratio was 1.07. Petmed Express Inc (PETS) had a slightly positive performance, with a gain of 0.03 or 0.20%, while YI111 Inc had no change in its stock price. WBA operates in the retail trade sector and the drugstore chains industry, and its corporate headquarters is located in Deerfield, Illinois. There were no executives listed for the company. Investors will likely keep an eye on WBA’s performance in the coming months, especially with its projected earnings report on June 29, 2023.
Analysts Predict Significant Increase in Walgreens Boots Alliance Inc (WBA) Stock Price
On May 26, 2023, Walgreens Boots Alliance Inc (WBA) stock closed at a price of $29.86. However, according to data from CNN Money, the 14 analysts offering 12-month price forecasts for WBA have a median target of $39.50, with a high estimate of $54.00 and a low estimate of $32.00. This suggests that there is potential for a significant increase in the stock price in the coming months.
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