Published on 23 Jan 2023 on Zacks via Yahoo Finance
Walgreens Boots (WBA) Benefits From Innovation Amid Margin Woe
Walgreens Boots’ WBA various strategic partnerships are expected to benefit the business over the long run. Yet, persistent reimbursement pressure and competitive market offer tough challenges for the company. The stock carries a Zacks Rank #3 (Hold).
Walgreens Boots exited first-quarter fiscal 2023, with better-than-expected earnings and revenues. The company’s U.S. Healthcare business grew, led by key contract wins, continued partnership growth and a strong focus on execution. The company achieved the calendar year 2022 target for co-located VillageMD clinics of 200.The company continues to play a leading role in COVID-19 vaccinations and testing, administering 8.4 million vaccinations in the reported quarter. Walgreens Boots raised its U.S. Healthcare target in November, including the fiscal year 2025 sales goal to the range of $14.5-$16.0 billion, up from $11.0-$12.0 billion previously. Moreover, the company raised the 2023 sales guidance, reflecting continued growth momentum.
In terms of new launches. Walgreens Boots launched 24 hours same-day delivery, offering the widest range of retail items for around-the-clock delivery across the country. This adds to the company’s broad range of channel access, including one-hour delivery and 30-minute pickup.