-=Walgreens Boots Alliance (WBA) reported earnings on Tue 27 June 23 (b/o)

 ** charts before earnings **

** charts after earnings **

Walgreens Boots Alliance misses by $0.07, beats on revs; guides FY23 EPS below consensus; immediate actions to improve profitability including $600 million of incremental cost savings

• Reports Q3 (May) earnings of $1.00 per share, $0.07 worse than the FactSet Consensus of $1.07; revenues rose 8.6% year/year to $35.41 bln vs the $34.23 bln FactSet Consensus.
• Co issues downside guidance for FY23, sees EPS of $4.00-4.05 vs. $4.45 FactSet Consensus. For the full fiscal year 2023, Walgreens Boots Alliance now expects adjusted EPS of $4.00 to $4.05 from $4.45 to $4.65 previously, reflecting challenging consumer and macroeconomic conditions, and lower COVID-19 vaccine and testing volumes.
  • The fourth quarter is expected to be negatively impacted by a higher effective tax rate, shifting U.S. consumer spending with heightened macro pressures, and the impact of a weaker respiratory season for both U.S. Retail Pharmacy and U.S. Healthcare. Despite these challenges, the Company expects adjusted operating income growth to accelerate in the fourth quarter from 0.6 percent in the third quarter.
• For the fiscal year 2024, Walgreens Boots Alliance is providing preliminary expectations for low- to mid-single digit adjusted operating income growth, with the U.S. Healthcare and U.S. Retail Pharmacy performance more than offsetting headwinds from lower sale and leaseback program benefits, lower COVID-19 contribution, and the sale of holdings in AmerisourceBergen.
  • Adjusted operating income growth is expected to outpace adjusted EPS due to a higher tax rate and a negative impact from non-controlling interest.
• The Company is taking immediate actions to drive sustainable growth including:
  Raising the Transformational Cost Management Program target from $3.5 billion to $4.1 billion in cumulative savings by fiscal 2024; expecting cost savings of $800 million in fiscal 2024
  • Implemented capital and project spend reductions; working capital optimization program launched, benefiting fiscal 2024
  • Advancing portfolio simplification to pay down debt and fund strategic initiatives
  • Announcing swift actions to improve the U.S. Healthcare path to profitability, including realigned CityMD costs, accelerated VillageMD patient panel build, aggressive integration of prior Summit Health acquisitions, upgraded VillageMD management, and an increased and accelerated synergy target for VillageMD/Summit Health
  • Accelerating synergies between U.S. Healthcare and Walgreens operations

Unusual Options Activity, Fri 6/16/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• KEY Jun 10 calls (volume: 2370, open int: 520, implied vol: ~102%, prev day implied vol: 63%). 1500 contracts traded in a single transaction. Co is confirmed to report earnings July 20 before the open.
• CRNC Jul 40 calls are seeing interest with the underlying stock up 5% (volume: 2720, open int: 0, implied vol: ~59%, prev day implied vol: 46%). Co is expected to report earnings early August.
• LVS Jun 61 calls (volume: 3190, open int: 80, implied vol: ~34%, prev day implied vol: 32%). 1300 contracts traded in a single transaction. Co is expecting to report earnings mid-July.
• WBA Jun 32.5 calls (volume: 11.5K, open int: 200, implied vol: ~25%, prev day implied vol: 24%). Co is confirmed to report earnings Jun 27 before the open.
  

Bearish Put Activity:

• PCG Jun 15 puts (volume: 1880, open int: 410, implied vol: ~25%, prev day implied vol: 22%). Co is expected to report earnings early August.
• DBX Jun 25.5 puts (volume: 1500, open int: 350, implied vol: ~34%, prev day implied vol: 32%). Co is expecting to report earnings early August.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.88, VIX: (13.74, -0.76, -5.2%).
Today is options expiration -- the last day to trade June equity options.

-=Walgreens Boots Alliance (WBA) reported earnings on Thur 31 March 22 (b/o)

 

The Deerfield, Ill., drugstore chain posted net income attributable to Walgreens of $883 million, compared with $1.03 billion a year earlier. Earnings from continuing operations were $1.02 a share, compared with $1.06 in the year-ago period. Adjusted for one-time items, earnings were $1.59 a share. Analysts surveyed by FactSet were looking for adjusted earnings of $1.37.

An Omicron-led surge in COVID-19 cases during the second quarter had boosted demand for vaccines and testing at Walgreens. But testing has slowed since January, Walgreens executives said, adding it remains a steady source of business as travel resumes.

Despite the rise of the highly transmissible Omicron sub-variant BA.2, health experts in the United States believe a new wave of infections appears unlikely as overall cases are declining from January's record highs.

Walgreens expects low-single digit growth in profit for 2022, implying it would earn between $1.69 and $1.79 per share in the second half of the year versus consensus estimates of $1.97, according to Evercore ISI.

The company said its cautious forecast was due to increasing investments in its Walgreens Health unit, which it created earlier in fiscal year 2022.

"These new investments, paired with tough sales and profit comparisons from last year's COVID-19 activities, could keep sales and profit growth muted for a while, assuming no pandemic resurgence," said Edward Jones analyst John Boylan.

Walgreens has forecast 30 million vaccinations this year at its sites. In the second quarter ended Feb. 28, it administered about 11.8 million doses of vaccine and sold 6.6 million tests.

Earnings this week : Mar 28 - Apr 1, 22 (wk 13)

Monday (Mar 28)

• Morning:  SAIC
• Afternoon: PLAY

Tuesday (Mar 29)

• Morning: ASO CONN LOVE MKC DTC
• Afternoon:  CALM CHWY LULU MU MLKN PRGS PVH RH SPWH VRNT

Wednesday (Mar 30)

• Morning:  AER BNTX CNM FIVE MSM PAYX
• Afternoon:  PHR PATH

Thursday (Mar 31)

• Morning: SHCR WBA
• Afternoon:  BB BLND DCT NCNO

Amazon (AMZN) launches digital pharmacy

• That launch has been expected for some time, although the exact timing was uncertain. Well, that time has arrived, as Amazon's pharmacy services are now available in 45 states, with the other five states expected to be added in the future.
• This expansion puts the e-commerce company into more direct competition with pharmacy giants, such as CVS and Walgreens Boots.

 

 

(Bloomberg)—Amazon.com Inc. unveiled its biggest push into selling prescription drugs with the launch of a digital pharmacy and discounts for paying U.S. Prime members that sent shock waves through shares of drugstore chains and distributors.

The e-commerce giant on Tuesday unveiled Amazon Pharmacy, a section of its retail website and mobile application that lets people order medication. Shoppers can pay using their health insurance. Prime members who don’t use their insurance are eligible for discounts on generic and brand-name drugs on Amazon’s site or at about 50,000 participating pharmacies.

Amazon’s new offering comes more than two years after its $753 million acquisition of PillPack, an online pharmacy known for organizing prescriptions into packets. This expansion puts the Seattle-based e-commerce company into more direct competition with pharmacy giants CVS Health Corp. and Walgreens Boots Alliance Inc., the two largest chains in the U.S.

The move also helps Amazon compete with Walmart Inc. and other big-box stores that already sell prescription drugs.

Analysts have long expected Amazon to dive deeper into health care in a bet the company can bring its digital real estate and logistical prowess to bear on a roughly $4 trillion industry in the U.S. with a reputation for inefficiency. The company rattled drug retailers with its PillPack acquisition, but Amazon has been slow to integrate the online pharmacy startup into its offerings.

The announcement Tuesday marks the first time that shoppers can order prescription drugs directly on Amazon. Previously, they were redirected to PillPack’s website. An integrated pharmacy removes one of the few gaps in Amazon’s offerings compared with major big box and grocery rivals, some of whom have long filled shoppers’ prescriptions in the same stores where they sold flat-screen televisions or cans of soup.

The discounts are a clear play for people who pay for their medications with cash, whether they are uninsured or are looking to save money. Strong demand for transparency and better deals have helped fuel the rise of discount card programs like GoodRx Holdings Inc. Amazon will display both the price when using insurance and the price without. Infusing transparency into a system that has been frustratingly opaque for consumers could alter the supply chain.

Amazon’s entry into a market doesn’t guarantee its dominance. Drugstores have long insisted that patients prefer to talk to their pharmacist at the counter, an experience Amazon will try to recreate digitally.

Amazon Chief Executive Officer Jeff Bezos has positioned Prime, Amazon’s paid membership program, at the center of the company’s efforts to create loyal customers. What was originally an unlimited shipping program has grown in recent years to include video streaming, games and digital storage, and discounts at Amazon-owned Whole Foods Market.

-=Walgreens Boots Alliance (WBA) reported earnings on Thur 9 July 20 (b/o)

Quarterly Div / Yield
0.4575 / 4.73%  (now 0.4675)


Walgreens Boots Alliance misses by $0.39, reports revs in-line; guides FY20 EPS below consensus; raises dividend

Reports Q3 (May) earnings of $0.83 per share, $0.39 worse than the S&P Capital IQ Consensus of $1.22; revenues rose 0.1% year/year to $34.63 bln vs the $34.32 bln S&P Capital IQ Consensus.

• Co experienced adverse sales impact of approximately $700 million to $750 million, almost entirely from the company's non-U.S. businesses
• Both operating income and adjusted operating income included an adverse impact of $700 million to $750 million from the above items, or $0.61 to $0.65 per share, excluding impairment charges

Co issues downside guidance for FY20, sees EPS of $4.65-4.75 vs. $5.49 S&P Capital IQ Consensus.

• Guidance includes estimated adverse COVID-19 impacts of $1.03 to $1.14 per share.

Dividend Increase and Share Repurchase Program Update

• On July 8, 2020 the WBA board of directors declared a quarterly dividend of 46.75 cents per share, an increase of 2.2 percent. The increased dividend is payable September 11, 2020 to stockholders of record as of August 19, 2020, and raises the annual rate from $1.83 per share to $1.87 per share.
• The company also announced that it was suspending activity under its share repurchase program.

Earnings this week : July 6 - 10, 20 (wk 28)

Monday (July 6)
None

Tuesday (July 7)

• Morning: PAYX
• Afternoon: LEVI SGH

Wednesday (July 8)

• Morning: SMPL
• Afternoon: BBBY

Thursday (July 9)

• Morning: AZZ HELE WBA
• Afternoon: PSMT WDFC

Friday (July 10)

• Morning: GBX
• Afternoon: SJR

-= Walgreens Boots Alliance (WBA) to be acquired by KKR & Co. (KKR)?

• Bloomberg reported that KKR & Co. (KKR) made a formal approach to buy out the Dow component.

Walgreens Boots Alliance (WBA) reported earnings on Tue 2 Apr 2019 (b/o)

** charts before earnings **

 

** charts after earnings **

 

Walgreens Boots Alliance misses by $0.08, reports revs in-line; lowers FY19 EPS below consensus; provides update on Transformational Cost Management Program

• Reports Q2 (Feb) earnings of $1.64 per share, $0.08 worse than the S&P Capital IQ Consensus of $1.72; revenues rose 4.6% year/year to $34.53 bln vs the $34.57 bln S&P Capital IQ Consensus.
• Co issues downside guidance for FY19, sees EPS of ~flat yr/yr from $6.02 in FY18, plus $0.04 of FX headwinds, which equates to $5.98 vs. $6.38 S&P Capital IQ Consensus.
  • Fiscal 2019 adjusted EPS growth expected to be roughly flat at constant currency rates, compared with previous guidance of 7 percent to 12 percent growth
• Long-Term Business Model
  • The company confirmed its existing transformation priorities and announced it will be taking immediate action to reinforce and accelerate them. With these actions, the company's business model aims to deliver improved performance in 2020, and mid-to-high single-digit growth in adjusted EPS, at constant currency rates, in the following years.
• Transformational Cost Management Program
  • The company's global cost review, scheduled for completion by the end of April 2019, has provided sufficient visibility to increase the annual cost savings target from the transformational cost management program from in excess of $1 billion to in excess of $1.5 billion by fiscal 2022. The program includes divisional optimization initiatives, global smart spending, global smart organization and digitalization of the enterprise to transform long-term capabilities.
  • During the second quarter and since the quarter ended, the company has taken decisive steps to reduce costs in the UK and to optimize the field management structure in the U.S.
  • The company continues to anticipate that aspects of such initiatives will result in significant restructuring and other special charges as they are implemented. The company has recognized cumulative pre-tax charges of $179 million for the six months ended February 28, 2019. These charges primarily relate to the Pharmaceutical Wholesale and Retail Pharmacy International divisions.

Earnings this week : April 1 - 5, 19 (wk 14)

Notable earnings reports:

• Cal-Maine Foods (NASDAQ:CALM) on April 1; 
• GameStop (NYSE:GME) and Walgreen Boots Alliance (NASDAQ:WBA), Lamb Weston (LW) on April 2; 
• Signet Jewelers (NYSE:SIG) and Acuity Brands (NYSE:AYI) on April 3; 
• Constellation Brands (NYSE:STZ), Duluth Holdings (NASDAQ:DLTH) and RPM International (NYSE:RPM) on April 4; 
• Greenbrier (NYSE:GBX) on April 5.

Walgreens Boots Alliance (WBA) reported earnings on Thur 11 Oct 18 (b/o)

** charts before earnings **

 

** charts after earnings **

Walgreens Boots Alliance beats by $0.03, misses on revs; guides FY19 EPS in-line 

• Reports Q4 (Aug) earnings of $1.48 per share, $0.03 better than the S&P Capital IQ Consensus of $1.45; revenues rose 10.9% year/year to $33.44 bln vs the $33.86 bln S&P Capital IQ Consensus.
  • Retail Pharmacy USA had fourth quarter sales of $25.5 billion, +14.4% Y/Y.
    
    • Sales in comparable stores +0.3% Y/Y
    • Pharmacy sales, which accounted for 73.6 percent of the division's sales in the quarter, +16.7% Y/Y compared with the year-ago quarter, primarily due to higher prescription volume from the acquisition of Rite Aid stores and from central specialty.
      
      • Comparable pharmacy sales +1.3%, reflecting higher volume. Reimbursement pressure and generics had a negative impact on comparable pharmacy sales growth, partially offset by brand inflation.
    • Retail sales +8.3% Y/Y , reflecting the acquisition of Rite Aid stores.
      
      • Comparable retail sales were down 1.9 percent in the quarter, with declines in the consumables and general merchandise category and in the personal care category, partially offset by growth in the health and wellness category and in the beauty category.
  • Retail Pharmacy International had fourth quarter sales of $2.9 billion, a decrease of 1.9 percent from the year-ago quarter. Sales decreased 2.7 percent on a constant currency basis.
    
    • Comparable pharmacy sales decreased 3.4 percent on a constant currency basis, primarily due to lower prescription volume and a decline in UK pharmacy funding.
• Co issues in-line guidance for FY19, sees EPS growth of 7-12% (implies EPS of $6.40-6.70) vs. $6.42 S&P Capital IQ Consensus.

Earnings this week : Oct 8 - 12, 18 (wk 41)

Earnings confirmed to report this week

Tuesday (Oct 9)

• Morning: AZZ, HELE

Wednesday (Oct 10)

• Morning: FAST

Thursday (Oct 11)

• Morning: CBSH DAL  DAVA  WBA

Friday (Oct 12)

• Morning: C JPM  PNC WFC FRC

=Walgreens (WBA) reported earnings on Thur 29 June 2017 (b/o)

Rite Aid (RAD) and Walgreens (WBA) terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln; also reported earnings

Rite Aid (RAD) and Walgreens (WBA) terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln :

Rite Aid Corporation (RAD) announced that it has entered into an asset purchase agreement with Walgreens Boots Alliance, Inc. (WBA), whereby WBA will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 billion, on a cash-free, debt-free basis. Under the terms of the agreement, Rite Aid has the option to purchase generic drugs that are sourced through an affiliate of WBA at cost, substantially equivalent to Walgreens for a period of 10 years.

• The company also announced the immediate termination of the merger agreement, which was announced on October 27, 2015 and amended on January 29, 2017, under which WBA would have acquired all outstanding shares of Rite Aid. The decision to terminate the merger agreement follows feedback received from the Federal Trade Commission that led the company to believe that the parties would not have obtained FTC clearance to consummate the merger.
• In connection with the termination, WBA has agreed to pay Rite Aid a termination fee in the amount of $325 million in cash. In light of the termination of the merger agreement, the divestiture agreement with Fred's, Inc. (FRED) was also terminated, effective today.
• Rite Aid expects to use a substantial majority of the net proceeds from the transaction to repay existing indebtedness, significantly reducing Rite Aid's leverage levels. Rite Aid also expects that the federal tax gain on the sale of the assets will be largely offset by its net operating loss carryforwards, resulting in a minimal cash tax payment on this transaction.

Walgreens Boot Alliance beats by $0.03, beats on revs; guides FY17 EPS above consensus; enters into new $5.18 bln deal for 2,186 Rite Aid (RAD) stores, terminating old deal with Fred's (FRED) (WBA) :

• Reports Q3 (May) earnings of $1.33 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $1.30; revenues rose 2.1% year/year to $30.12 bln vs the $29.72 bln Capital IQ Consensus. 
  • Retail Pharmacy USA had third quarter sales of $22.5 billion, an increase of 6.3% over the year-ago quarter. Sales in comparable stores increased 3.7% compared with the same quarter a year ago. Pharmacy sales, which accounted for 69.9% of the division's sales in the quarter, increased 10.3% compared with the year-ago quarter. This was primarily due to higher prescription volumes including mail and central specialty following the formation of AllianceRx Walgreens Prime. Comparable pharmacy sales increased 5.8%, primarily due to higher volume. Retail sales decreased 1.8% in the third quarter compared with the year-ago period, which includes the impact of the previously announced closure of certain e-commerce operations. Comparable retail sales were down 0.4% in the quarter, with declines in the consumables and general merchandise category and in the personal care category partially offset by growth in the health and wellness category and in the beauty category.
  • Retail Pharmacy International had third quarter sales of $2.8 billion, a decrease of 10.3% from the year-ago quarter mainly due to currency translation. Sales decreased 0.2% on a constant currency basis. On a constant currency basis, comparable store sales increased 0.2% compared with the year-ago quarter. Comparable pharmacy sales decreased 0.1% on a constant currency basis, primarily due to the negative impact of pharmacy funding in the UK. Comparable retail sales increased 0.4% on a constant currency basis, reflecting growth in the UK.
• Co issues upside guidance for FY17, sees EPS of $4.98-5.08 from $4.90-5.08, excluding non-recurring items, vs. $4.96 Capital IQ Consensus Estimate. 
• Walgreens Boots Alliance also announced today a new definitive agreement with Rite Aid (RAD) under which Walgreens Boots Alliance will purchase 2,186 stores, three distribution centers and related inventory from Rite Aid. The consideration for the transaction will be $5.175 billion in cash, the assumption by Walgreens Boots Alliance of the related real estate leases and the grant of an option to Rite Aid, exercisable through May 2019. This new agreement replaces the previous merger agreement with Rite Aid, announced in October 2015 and amended in January 2017, and the agreement to divest certain Rite Aid stores to Fred's (FRED) announced in December 2016. Both of these agreements have been terminated.
• On 28 June 2017 the company authorized a share repurchase program for up to $5 billion of the company's shares prior to the program's expiration on 31 August 2018.
• "Our results this quarter continued to meet our expectations as strategic partnerships brought more patients to our U.S. pharmacies. This led to our highest reported quarterly retail prescription market share in the U.S." 

=Rite Aid (RAD) reported earnings on Thur 29 June 2017 (b/o)

• Rite Aid (RAD) and Walgreens (WBA) terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln; also reported earnings.
• Among the antitrust concerns was that the resulting drugstore giant—which would have challenged CVS Health—would have been able to bully pharmacy-benefit managers steering corporate and government drug plans.

Rite Aid (RAD) and Walgreens (WBA) terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln :

Rite Aid Corporation (RAD) announced that it has entered into an asset purchase agreement with Walgreens Boots Alliance, Inc. (WBA), whereby WBA will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 billion, on a cash-free, debt-free basis. Under the terms of the agreement, Rite Aid has the option to purchase generic drugs that are sourced through an affiliate of WBA at cost, substantially equivalent to Walgreens for a period of 10 years.

• The company also announced the immediate termination of the merger agreement, which was announced on October 27, 2015 and amended on January 29, 2017, under which WBA would have acquired all outstanding shares of Rite Aid. The decision to terminate the merger agreement follows feedback received from the Federal Trade Commission that led the company to believe that the parties would not have obtained FTC clearance to consummate the merger.
• In connection with the termination, WBA has agreed to pay Rite Aid a termination fee in the amount of $325 million in cash. In light of the termination of the merger agreement, the divestiture agreement with Fred's, Inc. (FRED) was also terminated, effective today.
• Rite Aid expects to use a substantial majority of the net proceeds from the transaction to repay existing indebtedness, significantly reducing Rite Aid's leverage levels. Rite Aid also expects that the federal tax gain on the sale of the assets will be largely offset by its net operating loss carryforwards, resulting in a minimal cash tax payment on this transaction.

Rite Aid misses by $0.04, misses on revs; enters new agreement with Walgreens (WBA) after merger agreement terminated:

• Reports Q1 (May) loss of $0.05 per share, excluding non-recurring items, $0.04 worse than the two analyst estimate of ($0.01); revenues fell 4.9% year/year to $7.78 bln vs the $8.29 bln Capital IQ Consensus.
• Same store sales for the quarter decreased 3.9 percent over the prior year, consisting of a 5.0 percent decrease in pharmacy sales and a 1.5 percent decrease in front-end sales. Pharmacy sales included an approximate 222 basis point negative impact from new generic introductions. The number of prescriptions filled in same stores, adjusted to 30-day equivalents, decreased 1.1 percent over the prior year period due in part, to exclusion from certain pharmacy networks that Rite Aid participated in the prior year. Prescription sales accounted for 67.9 percent of total drugstore sales, and third party prescription revenue was 98.3 percent of pharmacy sales.
• Adjusted EBITDA was $192.6 million or 2.5 percent of revenues for the first quarter compared to $286.0 million or 3.5 percent of revenues for the same period last year. The decline in Adjusted EBITDA is due to a decrease of $100.9 million in the Retail Pharmacy Segment, resulting from lower pharmacy gross profit, which decreased due to lower reimbursement rates, which the company was unable to fully offset with generic purchasing efficiencies and script count, partially offset by good cost control. Adjusted EBITDA in the Pharmacy Services Segment increased $7.4 million compared to the prior year as a result of higher gross profit.
• Walgreens (WBA)/Freds (FRED) transaction:
  • Rite Aid announced that it has entered into an asset purchase agreement with Walgreens Boots Alliance, Inc. (WBA), whereby WBA will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 billion, on a cash-free, debt-free basis. Under the terms of the agreement, Rite Aid has the option to purchase generic drugs that are sourced through an affiliate of WBA at cost, substantially equivalent to Walgreens for a period of 10 years.
  • The company also announced the immediate termination of the merger agreement, which was announced on October 27, 2015 and amended on January 29, 2017, under which WBA would have acquired all outstanding shares of Rite Aid. The decision to terminate the merger agreement follows feedback received from the Federal Trade Commission that led the company to believe that the parties would not have obtained FTC clearance to consummate the merger.
  • In connection with the termination, WBA has agreed to pay Rite Aid a termination fee in the amount of $325 million in cash. In light of the termination of the merger agreement, the divestiture agreement with Fred's, Inc. (FRED) was also terminated, effective today.

=Rite Aid (RAD) & Walgreens (WBA) amend merger agreement

Rite Aid & Walgreens (WBA) amend and extend definitive merger agreement; parties have agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance to a maximum of $7.00/share and a minimum of $6.50/share (RAD) :

Under the terms of the amendment, the parties have agreed to reduce the price for each share of Rite Aid common stock to be paid by Walgreens Boots Alliance. The revised price will be a maximum of $7.00 per share and a minimum of $6.50 per share. In addition, Walgreens Boots Alliance will be required to divest up to 1,200 Rite Aid stores and certain additional related assets if required to obtain regulatory approval. The exact price per share will be determined based on the number of required store divestitures, with the price set at $7.00 per share if 1,000 stores or fewer are required for divestiture and at $6.50 per share if 1,200 stores are required for divestiture. If the required divestitures fall between 1,000 and 1,200 stores, then there will be a pro-rata adjustment of the price per share. Walgreens Boots Alliance agreement to divest up to 1,200 Rite Aid stores represents an increase of up to 200 stores over the 1,000 stores that Walgreens Boots Alliance had agreed to divest under the terms of the original agreement.

• Additionally, Walgreens Boots Alliance and Rite Aid agreed to extend the end date under the previously announced agreement from 27 January 2017 to 31 July 2017 in order to allow the parties additional time to obtain regulatory approval.

=Walgreens Boot Alliance (WBA) reported earnings on Thur 5 Jan 2017 (b/o)

Walgreens Boot Alliance beats by $0.01, misses on revs; guides FY17 EPS in-line; in active talks with FTC regarding Rite Aid (RAD) acquisition :

• Reports Q1 (Nov) earnings of $1.10 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $1.09; revenues fell 1.8% year/year to $28.5 bln vs the $29.27 bln Capital IQ Consensus. 
  • Retail Pharmacy USA: Sales in comparable stores increased 1.1% compared with the same quarter a year ago. Pharmacy sales, which accounted for 69.1% of the division's sales in the quarter, increased 2.5% compared with the year-ago quarter. Comparable pharmacy sales increased 2.0%.
  • Pharmacy Int'l: On a constant currency basis, comparable store sales decreased 0.1% compared with the year-ago quarter. Comparable pharmacy sales decreased 0.5 % on a constant currency basis, primarily due to a reduction in government pharmacy funding in the UK, which was partially offset by growth in other international markets. Comparable retail sales increased 0.2% on a constant currency basis, reflecting growth in all countries except Chile and Mexico.
• Co issues in-line guidance for FY17, raises EPS to $4.90-5.20 from $4.85-5.20, excluding non-recurring items, vs. $5.00 Capital IQ Consensus Estimate. 

Rite Aid Acquisition

• Walgreens Boots Alliance is actively engaged in discussions with the Federal Trade Commission (FTC) regarding its pending acquisition of Rite Aid Corporation, which was announced 27 October 2015. The company is working toward a close of the acquisition in the early part of this calendar year.
• As announced 20 December 2016, Walgreens Boots Alliance and Rite Aid have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred's, Inc. for $950 million in an all-cash transaction. The divestiture transaction is subject to FTC approval, the approval and completion of the pending acquisition of Rite Aid by Walgreens Boots Alliance and other customary closing conditions. Taking into account the expected divestitures, Walgreens Boots Alliance continues to expect that the acquisition will be accretive to its adjusted diluted net earnings per share in the first full year after closing of the transaction. The company also continues to expect that it will realize synergies from the acquisition in excess of $1 billion, to be fully realized within three to four years of closing of the merger.

===Walgreens Boot Alliance (WBA) reported earnings on Wed 6 July 2016 (b/o)

Walgreens Boot Alliance beats by $0.04, reports revs in-line; raises low end of FY16 EPS, in-line; reaffirms RAD acquisition to close 2H  :

• Reports Q3 (May) earnings of $1.18 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $1.14; revenues rose 2.4% year/year to $29.5 bln vs the $29.72 bln Capital IQ Consensus, or 3.3% on a constant currency basis.
  • Retail Pharmacy USA had third quarter total sales of $21.2 billion, an increase of 3.7% over the year-ago quarter. Sales in comparable stores increased 3.9%, just above estimates. Pharmacy sales, which accounted for 67.4% of the division's total sales in the quarter, increased 5.8% compared with the year-ago quarter, while comparable pharmacy sales increased 6.0%.
  • Adjusted fiscal 2016 third quarter net earnings attributable to Walgreens Boots Alliance increased 14.7% to $1.3 billion..
  • Combined net synergies were $330 million in the fiscal 2016 third quarter.
• $1 billion fiscal 2016 combined net synergy goal achieved in June.
• Co issues in-line guidance for FY16, raises EPS to $4.45-4.55 from $4.35-4.55, excluding non-recurring items, vs. $4.49 Capital IQ Consensus Estimate.
• Walgreens Boots Alliance is continuing its integration planning and continues to expect the Rite Aid (RAD) transaction to close in the second half of calendar 2016.

Walgreens Boot Alliance (WBA) reported earnings on Tue 5 Apr 2016 (b/o)

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Walgreens Boot Alliance beats by $0.03, misses on revs; raises low end of FY16 EPS, in-line; Rite Aid deal on track for 2H close :

• Reports Q2 (Feb) earnings of $1.31 per share, excluding non-recurring items, $0.03 better thanthe Capital IQ Consensus of $1.28; revenues rose 13.6% year/year to $30.18 bln vs the $30.67 bln Capital IQ Consensus, largely due to the full consolidation of Alliance Boots for the entire quarter this year, while foreign currency translation adversely impacted sales by ~$750 million or 2.4%. Adjusted fiscal 2016 second quarter net earnings attributable to Walgreens Boots Alliance1 increased 14.4 percent to $1.4 billion.
  • Retail Pharmacy USA: The Retail Pharmacy USA division, whose principal retail pharmacy brands are Walgreens and Duane Reade, had second quarter total sales of $21.5 billion, an increase of 2.1% over the year-ago quarter. Sales in comparable stores increased 2.2% compared with the same quarter a year ago. Pharmacy sales, which accounted for 65.0% of the division's total sales in the quarter, increased 3.2% compared with the year-ago quarter, while comparable pharmacy sales increased 3.7%.
  • The Retail Pharmacy International division, whose principal retail brands are Boots in the UK, Thailand, Norway, the Republic of Ireland and The Netherlands, Benavides in Mexico and Ahumada in Chile, had second quarter total sales of $3.7 billion. On a pro forma constant currency basis, comparable store sales in the second quarter increased 2.3% compared with the same period a year ago, led by growth in the UK and by strong growth in the Republic of Ireland. Comparable pharmacy sales increased 2.6% in the second quarter compared with last year's second quarter, driven by good growth in the UK. 
• Combined net synergies were $329 million in the fiscal 2016 second quarter and $617 million in the first six months of fiscal 2016. The co continues to expect to reach at least $1.0 billion in combined net synergies in fiscal 2016 relating to the strategic combination with Alliance Boots. 
• Co issues in-line guidance for FY16, raises EPS to $4.35-4.55 from $4.30-4.55, excluding non-recurring items, vs. $4.48 Capital IQ Consensus Estimate.
• Walgreens Boots Alliance is continuing its integration planning and continues to expect the Rite Aid (RAD) transaction to close in the second half of calendar 2016.

Walgreens Boots Alliance (WBA) reported earnings on Wed 28 Oct 15 (b/o)

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Options trade idea : Walgreen (WAG)

In 2014 Walgreens purchased Switzerland-based Alliance Boots. The two companies merged to form a new holding company, Walgreens Boots Alliance Inc. The company trades on the Nasdaq under the symbol WBA.

     

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