Walgreens just released its fourth-quarter earnings. Will the earnings report relieve pressure on the stock? Should you buy Walgreens stock after the earnings report?
Highlights from Walgreens' earnings report
Walgreens reported its fourth-quarter earnings before the markets opened in the U.S. on Thursday, Oct. 15. The earnings report is for the three months ended Aug. 31.
Walgreens’ earnings report delivered revenue of $34.7 billion, which increased 2.3 percent year-over-year and beat the consensus estimate at $34.36 billion. The company posted an EPS of $1.02, which beat the consensus estimate at $0.96. The company's strong U.S. pharmacy business supported its better-than-expected earnings.
Walgreens sees its profit improving in 2021. The company expects the blow from the COVID-19 pandemic to diminish and consumer spending to pick up. In a bid to defeat the COVID-19 pandemic, Walgreen is offering free testing. The company expects its recovery plan to support strong earnings in 2020.
What is Walgreens’ stock price today?
Walgreens stock popped up as much as 2.80 percent to trade at $36.93 in the pre-market session on Oct. 15. The stock fell 0.75 percent on Oct. 14 and closed at $35.91 after trading in the range of $35.65 – $36.81. So far, Walgreens stock is down 40 percent in 2020.
Walgreens stock rises 0.7% after Q4 results, to be the Dow's lone premarket gainer— MarketsTicker (@MarketsTicker) October 15, 2020
Walgreens' stock forecast
Should you buy Walgreens stock after the earnings report? The most bullish analyst sees a 28 percent upside potential in the stock price from the current level to $46 in 12 months. The most bearish analyst sees an 8.0 percent downside in Walgreens stock to $33. Investors buying Walgreens stock will be capturing it at more than a 44 percent discount to its 52-week high of $64.50.
Walgreens’ dividend dates in 2020
Walgreens has a long dividend history. The company’s dividend history may impress investors seeking regular income. Walgreens pays quarterly dividends in March, June, September, and December. The company has been paying dividends for 87 years. Walgreens has consistently increased its dividends per share for the last 45 years, according to its investor relations website.
Walgreens has paid a dividend three times in 2020. The last dividend date was Sept. 11 when the company paid out a quarterly cash dividend of $0.4675 per share. Walgreens paid a dividend of $0.4575 per share on March 12 and June 12.
Before the latest dividend increased to $0.4675 per share from $0.4575, Walgreens had increased the dividend amount from $0.4400 per share previously. Since Walgreens has paid a dividend per share of $1.87 in the last 12 months, its dividend yield is 5.0 percent.