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Market Overview

Earnings Outlook for Walgreens Boots Alliance


Walgreens Boots Alliance (NASDAQ:WBA) announces its next round of earnings this Thursday, January 07. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Walgreens Boots Alliance management projections, analysts predict EPS of $1.03 on revenue of $34.95 billion. In the same quarter last year, Walgreens Boots Alliance reported EPS of $1.37 on revenue of $34.34 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Thursday, EPS would have fallen 24.82%. Sales would be have grown 1.78% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.96 1.18 1.46 1.41
EPS Actual 1.02 0.83 1.52 1.37
Revenue Estimate 34.37 B 34.32 B 35.27 B 34.60 B
Revenue Actual 34.75 B 34.63 B 35.82 B 34.34 B

Stock Performance

Shares of Walgreens Boots Alliance were trading at $41.16 as of January 05. Over the last 52-week period, shares are down 23.08%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Walgreens Boots Alliance is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings