WBA soars: Walgreens stock up 25% on earnings despite store closures, as investors hope the worst is over

Walgreens Boots Alliance (WBA) stock surged over 25% after Q1 results exceeded expectations. Despite beating estimates for revenue and earnings per share, adjusted EPS declined year-over-year. The company's revenue increased by 7.5% year-over-year to $39.46 billion. Walgreens reported an operating loss of $245 million due to store closures. The company plans to close 1,200 underperforming US stores by 2027, with 500 closing in 2025. CEO Tim Wentworth expressed confidence in the company's turnaround strategy, which focuses on stabilizing retail pharmacy operations. Walgreens faces industry challenges, including reduced reimbursement rates for prescription drugs and competition from online retailers. Despite today's surge, WBA stock has declined 54% in the past year and 79% over five years. Investors hope that Walgreens' Q1 results signal an improvement in its financial performance. Whether the company's struggles are behind it remains uncertain. Other pharmacy chains like CVS and Rite Aid have also faced challenges. Walgreens' turnaround strategy involves optimizing its footprint, controlling costs, and improving cash flow.