How did WBA's Q2 2025 EPS forecast compare to past surprises?

Walgreens Boots Alliance (WBA) experienced a significant decline in its Q2 2025 adjusted EPS, which dropped to $0.63 compared to $1.20 in the same period last year, despite a 4.1% increase in sales to $38.6 billion. This decline was due to factors such as the adjusted effective tax benefit in the prior year, lower retail sales in the US, and profits from sale leasebacks in the previous year.

1. **Comparison to Past Surprises**: WBA's Q2 2025 EPS of $0.63 marks a 47.5% decline from the $1.20 EPS in the previous year, which is a substantial decrease. This decline is significant when compared to the past, indicating a challenging period for the company.
2. **Analyst Expectations**: Despite the decline, WBA's Q2 results outperformed analyst expectations, with the adjusted EPS beating consensus estimates. This suggests that while the company's performance was weak compared to its own historical performance, it still exceeded external expectations.
3. **Future Outlook**: WBA's future guidance has been withdrawn due to the pending acquisition by Sycamore Partners, which adds uncertainty to the company's future EPS forecasts. The company is in the early stages of its turnaround plan, and the EPS is likely to be influenced by the strategic changes and market conditions.

In conclusion, WBA's Q2 2025 EPS forecast represents a significant decline from the previous year, but it appears to have been somewhat better than analyst expectations. The company's strategic changes and the impact of the pending acquisition will likely influence its future EPS performance.