Earnings Report: June 27, 2023

 Earnings Report: June 27, 2023

    We are still easing our way into another earnings season. Today, we had one of our holdings, Walgreens report earnings. I will be looking over the earnings report and assessing how the quarter went, as well as giving my opinion on where the company stands. 

Walgreens Boots Alliance ($WBA)- The stock took a big tumble after the company reported earnings before the market opened this morning. The company beat on the top line, but had a slight miss on the bottom line expectations. The stock has seen a steady downtrend, as the price of the stock hit lows that we haven't seen in over a decade. I think the major hit in the stock price today can be credited to the management lowering guidance for the full year. The business has faced a lot of headwinds this year with covid slowing and the flu season not being as rampant as normal. It has definitely shown up in the bottom line as expenses have risen by a lot and we have seen a drastic decrease in EPS figures. I am a little worried about the debt situation with the company because of the interest rates right now. They have shown that they are barely getting by when it comes to that and with the higher interest rates, it may lead to some drastic effects for shareholders. I can see a dividend cut coming in the near future and as a shareholder, I wouldn't be too opposed to that. I would like to see a little bit of restructuring because it seems like the company is all over the place. If they can get back to their core business operations and steady on those, I think they can boost things back up to where they need to be. The cash flow is in a bad place, and this business needs some help. I am a little disappointed, but it has a long track and history, so I am just going to hold at this point. I would wait this out a couple more quarters if you are looking to buy, they have a lot of things to figure out. Hope the best for them, and I have faith that they can turn this ship back around and into the right direction again.




Thank you for reading!



*Information from Walgreens Boots Alliance and Google

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