Latest news with #BootsAlliance
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
Walgreens Shareholders Approve $10 Billion Sycamore Partners Deal
Walgreens WBA -0.34%decrease; red down pointing triangle Boots Alliance shareholders voted in favor of Sycamore Partners' nearly $10 billion acquisition at a special meeting. The deal, announced on March 6, would allow the New York private-equity firm to take Walgreens private. The drug-store chain expects the transaction to close in the third or fourth quarter of 2025.
Wall Street Journal
26-06-2025
- Business
- Wall Street Journal
Walgreens Sales Rise on Healthcare and Costs Cuts Ahead of Going Private
Walgreens WBA -0.35%decrease; red down pointing triangle Boots Alliance saw sales increase and losses narrow in its latest quarter, a potential harbinger of coming improvements as the company prepares to go private. The pharmacy chain in March was sold to private-equity firm Sycamore for $10 billion, down a staggering 91% from its $106 billion peak in 2015. The merger is currently expected to close in the third or fourth quarter of calendar year 2025.
Forbes
26-06-2025
- Business
- Forbes
Walgreens Reports Narrower Than Expected Loss Ahead Of Takeover
Walgreens Boots Alliance Thursday reported a narrower-than-expected $178 million loss in its third ... More quarter as the struggling pharmacy chain nears the end of its long run as a publicly traded company, the drugstore chain said June 26,. 2025. In this photo is an aerial view of a sign posted outside of a Walgreens store on January 04, 2024 in San Pablo, California. (Photo by) Walgreens Boots Alliance Thursday reported a narrower-than-expected $178 million loss in its third quarter as the struggling pharmacy chain nears the end of its long run as a publicly traded company. Walgreens fiscal third quarter results for the period ending May 31 of this year come as the company works on completing its sale to the investment firm Sycamore Partners for more than $10 billion. That deal, announced in early March, faces a special meeting of shareholders on July 11 to vote on approving the sale Though sales rose 7% to $39 billion, the company lost $175 million, 'a decrease of $519 million compared to net earnings of $344 million' in the year-ago period thanks largely to 'prior year after-tax gains related to fair value adjustments on variable prepaid forward derivatives and a partial sale of the company's equity method investment in Cencora, and higher tax expense in the current quarter.' Cencora is the large drug distributor that Walgreens owns a minority stake in and has been gradually selling. The Sycamore deal, which pays $11.45 per share — 29% above the December stock price — comes after years of Walgreens' pharmacy closings and plummeting stock in part due to a disastrous rollout of clinics attached to stores. Walgreens chief executive officer Tim Wentworth said third quarter results 'reflect continued improvement in our U.S. Healthcare segment and benefits from our cost savings initiatives, while we continued to see weakness in our U.S. front-end sales.' Walgreens said U.S. Retail Pharmacy segment sales rose nearly 8% to $39.7 billion compared to the year-ago quarter. Within that business, however, retail sales decreased 5% and that spilled onto adjusted operating income which decreased 30% to to $350 million from $501 million in the year-ago quarter. 'We remain focused on our turnaround plan, which will require time, disciplined focus and a balanced approach to manage future cash needs with investments necessary to navigate an evolving pharmacy and retail environment,' Wentworth said. Sycamore, a private equity firm specializing in consumer, distribution and retail-related investments, also agreed to 'one non-transferable right" to receive up to $3 in cash per Walgreens Boots Alliance share 'from the future monetization of WBA's debt and equity interests in VillageMD, which includes the Village Medical, Summit Health and CityMD businesses,' the companies said of Walgreens' primary care businesses. The total value of the deal, including the $10 billion in equity value, is more than $23 billion when debt and other items are included, the companies said. Walgreens third quarter results were much improved over its second quarter when the company in March reported a $2.8 billion loss thanks to a large impairment charge related to its struggling doctor-staffed clinic investment in VillageMD. The Sycamore deal comes after Walgreens, which had a market value of more than $100 billion a decade ago, undertook the failed VillageMD in-store clinic rollout that led it to close hundreds of stores to reduce debt and stem financial losses. Under former chief executive Roz Brewer, Walgreens spent billions of dollars investing in and operating physician-staffed clinic operator VillageMD. Walgreens invested more than $6 billion in VillageMD under Brewer to take a controlling stake, but the company has already scaled back dramatically on the expansion of doctor practices and clinics the company opened. In 2020, Walgreens said it planned to open 500 to 700 'Village Medical at Walgreens' physician-led primary care clinics in more than 30 U.S. markets over five years, with the 'intent to build hundreds more thereafter.'
Yahoo
22-05-2025
- Business
- Yahoo
Walgreens Boots Alliance (WBA) Stock Moves -0.13%: What You Should Know
Walgreens Boots Alliance (WBA) closed at $11.22 in the latest trading session, marking a -0.13% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.61%. At the same time, the Dow lost 1.91%, and the tech-heavy Nasdaq lost 1.41%. Prior to today's trading, shares of the largest U.S. drugstore chain had gained 2.18% over the past month. This has lagged the Retail-Wholesale sector's gain of 11.89% and the S&P 500's gain of 12.65% in that time. The upcoming earnings release of Walgreens Boots Alliance will be of great interest to investors. The company's upcoming EPS is projected at $0.34, signifying a 46.03% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $36.66 billion, up 0.85% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.66 per share and a revenue of $151.49 billion, representing changes of -42.36% and +2.59%, respectively, from the prior year. Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Walgreens Boots Alliance. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.88% higher. Right now, Walgreens Boots Alliance possesses a Zacks Rank of #3 (Hold). In the context of valuation, Walgreens Boots Alliance is at present trading with a Forward P/E ratio of 6.76. This indicates a premium in contrast to its industry's Forward P/E of 5.19. It is also worth noting that WBA currently has a PEG ratio of 1.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Pharmacies and Drug Stores industry was having an average PEG ratio of 0.78. The Retail - Pharmacies and Drug Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walgreens Boots Alliance, Inc. (WBA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
