What Analysts Think of Walgreens Stock Ahead of Earnings

Key Takeaways

Walgreens Boots Alliance ( WBA ) is set to report fiscal first-quarter earnings before the opening bell Friday, with the pharmacy retailer coming off a year in which it was the worst-performing stock in the S&P 500.

Analysts are cautious about Walgreens stock, with five "hold" ratings along with one each "buy" and "sell" rating among the seven analysts tracked by Visible Alpha. The stock has an average price target of $10, about 8% above its Wednesday close.

The pharmacy chain is expected to report $37.33 billion in sales for the quarter, up from $36.71 billion the same time last year, according to estimates compiled by Visible Alpha. Walgreens is projected to report a net loss per share of 2 cents compared to 8 cents last year. However, its adjusted earnings per share (EPS) is expected to be 38 cents per share, which would be down from 66 cents a year ago.

The pharmacy was originally set to report earnings Thursday, but pushed the report back a day as the market will be closed Thursday in remembrance of former president Jimmy Carter , who died late last month .

Report Follows Store Closure Announcement, Reports of Possible Sale

The company had a difficult 2024 as it noted a "challenging retail environment," as Walgreens was one of several retailers that lowered prices as it worked to win back customers. The stock hit its lowest point in decades in the second half of the year, ending the year at $9.33.

In its last report in October, Walgreens announced a plan to close roughly 1,200 stores across the U.S. over the next three years as it "focuses on stabilizing the retail pharmacy by optimizing our footprint" and cutting costs. About 500 of those closures are expected to come in this fiscal year.

Last month, reports emerged that Walgreens was in discussions to potentially be acquired by private equity firm Sycamore Partners in a deal that could see Sycamore sell off pieces of the pharmacy.

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