What's the outlook for WBA's EPS beyond 2025?
4/10/2025 04:13pm
**Walgreens Boots Alliance (WBA) is poised for a positive EPS outlook beyond 2025**, considering the following points:
1. **Improvement in Financial Performance**: WBA has demonstrated a significant improvement in its financial metrics, reporting a loss per share of $3.30 for Q2 2025, compared to $6.85 in the same quarter the previous year. The adjusted EPS of $0.63 for Q2 2025, although lower than the $1.20 in the year-ago quarter, still exceeded analyst expectations.
2. **Revenue Growth and Future Prospects**: The company has reported a 4.1% year-over-year revenue growth for Q2 2025, reaching $38.59 billion, surpassing Wall Street's predictions. Analysts maintain a positive outlook, with an average one-year price target of $12.04, suggesting a potential upside of 10.74% from the current stock price.
3. **Strategic Shift and Cost Savings**: WBA's strategic shift towards cost savings within U.S. Retail Pharmacy and growth in U.S. Healthcare are likely to positively impact its EPS in the long term. The company's operational improvements, such as the reported cost savings within U.S. Retail Pharmacy and growth in U.S. Healthcare, are expected to contribute to better financial performance over time.
4. **Market Position and Growth Drivers**: WBA's strong market position in retail pharmacy and healthcare, coupled with an increase in branded drug inflation and prescription volume, positions it well for potential EPS growth. The company's international segment also showed resilience, with Boots UK reporting an increase in comparable pharmacy and retail sales.
5. **Analyst Confidence and Valuation**: Analysts maintain a "Hold" position on WBA, with a balanced sentiment regarding the company's future performance. The GF Value metric estimates a significant possible upside for WBA, with a projected GF Value of $33.69, indicating a substantial potential upside from the current stock price.
In conclusion, while there are no specific EPS projections available for WBA beyond 2025, the company's recent financial improvements, revenue growth, strategic initiatives, and positive analyst sentiment suggest a favorable outlook for its EPS in the years to come.