What factors influence WBA's EPS performance most?

Walgreens Boots Alliance's (WBA) EPS is influenced by several key factors, primarily related to its operational performance and external market conditions. Here are the most significant influences: 1. **Revenue Growth**: WBA's EPS is impacted by the company's revenue growth. In Q2 2025, despite a 4.1% year-on-year increase in sales, the EPS was negatively affected by other factors. 2. **Cost Management**: The company's cost management practices, including cost savings within U.S. Retail Pharmacy and growth in U.S. Healthcare, have a direct bearing on its EPS. Effective cost management can positively influence EPS, while inefficiencies can negatively impact it. 3. **Tax Benefits**: The adjusted effective tax benefit in the prior year has a significant impact on WBA's EPS. The company attributed the decline in adjusted EPS to this factor, among others. 4. **Retail Sales**: Changes in retail sales, particularly in the U.S., can influence WBA's EPS. Lower retail sales have been cited as a factor in the reduced EPS compared to the previous year. 5. **Sale Leaseback Gains**: Profits from sale leaseback gains in the previous year also affect WBA's EPS. The absence of these gains contributed to the lower adjusted EPS in the reported quarter. 6. **Legal Settlements**: The company mentioned that significant legal settlements resulted in continued negative free cash flow, which could indirectly impact EPS by affecting operational efficiency and cash reserves. 7. **Merger and Acquisition Activities**: The pending acquisition by entities affiliated with Sycamore Partners has led WBA to withdraw its fiscal 2025 guidance, which may have implications for EPS due to restructuring costs or changes in business strategy. In summary, Walgreens Boots Alliance's EPS is influenced by its revenue growth, cost management, tax benefits, retail sales, sale leaseback gains, legal settlements, and merger/acquisition activities. These factors can either positively or negatively impact the company's EPS, depending on the specific circumstances and outcomes of these areas.