Amazon (AMZN) recently began letting customers use funds in their special healthcare savings account to pay for purchases of eligible products on its marketplace, the company confirmed to CNBC.
Rite Aid (RAD) reported results for the second quarter—which ended on September 1—yesterday. The company’s top line from continuing operations improved 1.4 % YoY (year-over-year) to $5.42 billion.
Rite Aid stock has risen a moderate 2.2% this year after falling 76% last year. Wall Street, however, expects some recovery in the stock price this year.
The top three drugstore chains in the US are in the process of forming new associations through mergers and acquisitions to create a more diversified portfolio and protect themselves from the growing online threat.
The proposed transaction would create a company that is projected to generate $83 billion in total sales and ~$3.7 billion (including run rate cost synergies) in adjusted EBITDA during the first year.
Why would Walgreens acquire AmerisourceBergen? As discussed, The Wall Street Journal recently reported that Walgreens Boots Alliance (WBA) is in acquisition talks with AmerisourceBergen (ABC). The deal, if proposed and completed, would combine America’s largest pharmacy chain (by drugstore count) with one of the largest drug distributors in the country. The significant deal would further consolidate […]
As we’ve discussed, Walgreens Boots Alliance (WBA) reported its 1Q18 results on January 4. The company’s top line increased 7.9% YoY (year-over-year) to $30.74 billion.
Walgreens Boots Alliance (WBA) reported its results for 1Q18 on Thursday, January 4. The results relate to the three-month period ending November 30, 2017.
Wall Street kept its stance unchanged on Rite Aid (RAD) after its third-quarter results. Evercore ISI, however, initiated coverage on the company on January 5 with an “underperform” rating.
As we discussed throughout this series, Rite Aid (RAD) reported better-than-expected quarterly profits on January 3. However, the third quarter results couldn’t stop the slide in the company’s stock price.
Rite Aid Corporation (RAD) reported third-quarter results on January 3. The company’s adjusted net earnings from continuing operations stood at $1.6 million, or $0.00 per diluted share, compared to $26.8 million or $0.03 per diluted share during the same period last year.
As we outlined in the previous part of this series, Rite Aid (RAD) reported a 5.6% YoY (year-over-year) fall in revenue from continued operations to $5.35 billion during the third quarter of 2017.
Rite Aid (RAD) reported its 3Q17 results after the market closed on January 3. The company’s top line plunged 5.6% YoY (year-over-year) to $5.35 billion (excluding discontinued operations).
CVS Health (CVS), America’s largest pharmacy chain, announced a $69 billion deal to purchase Aetna (AET), the country’s third-largest insurance company, on December 3, 2017.
Of the five analysts covering PetMed Express (PETS) in October 2017, two gave it “strong buy” ratings, two gave it “hold” ratings, and one gave it a “sell” rating. Its target price was $43.75.
With trailing 12-month sales of $181 billion, CVS Health is a pharmacy colossus. However, its focus seems to be on becoming more than just a retail pharmacy chain.
Walgreens Boots Alliance (WBA) is slated to release its fiscal 4Q17 earnings on October 25. WBA’s total sales are expected to reach $29.6 billion, a 4.6% increase over its fiscal 4Q16 sales.
The US drugstore market is dominated by two major players—CVS Health (CVS) and Walgreens Boots Alliance (WBA). CVS and WBA accounted for ~29% of the country’s prescription dispensing revenues in 2016.
Rite Aid’s shareholders have been the real losers from the delay and eventual termination of the deal between Rite Aid (RAD) and Walgreens Boots Alliance (WBA) in October 2015.
Rite Aid’s profitability has worsened over the years. Its gross margin has fallen from 29.0% in fiscal 2013 to just 22.6% in the first quarter of the current fiscal year.
Rite Aid (RAD) is slated to release its fiscal 2Q17 results on Thursday, September 28, 2017. Its EPS (earnings per share) is projected to fall to zero from last year’s $0.01.
Walgreens is covered by 25 Wall Street analysts. The company has received a rating of 2 on a scale of 1 (strong buy) to 5 (sell). It has 72% “buy” and 28% “hold” recommendations and no “sell” recommendations.
Wall Street’s reaction to WBA’s second quarter results While Walgreens (WBA) delivered mixed 2Q17 results, CEO (chief executive officer) Stefano Pessina’s optimism about the pending Rite Aid (RAD) deal has been well received by the analyst community. John Heinbockel of Guggenheim maintained a “buy” rating on WBA, issuing a price target of $100. While Heinbockel […]
In a recent research note, a Deutsche Bank analyst warned about a sharp plunge in Rite Aid’s share price if its proposed deal with Walgreens Boots Alliance falls apart.
Walgreens Boots Alliance (WBA) and Rite Aid (RAD) have amended their merger agreement. WBA will now pay less for each RAD share, depending on the number of locations it must divest.
In fiscal 1Q17, WBA reported a top-line fall for the first time in the last 16 quarters. But the fall in revenues was primarily due to currency headwinds.
Walgreens Boots Alliance (WBA) is currently trading at $86.08 as of December 19, 2016, which is ~2.2% below its 52-week high. The stock has risen 1.0% YTD.
Walgreens’s deal with Rite Aid is currently awaiting the Federal Trade Commission’s (or FTC) approval. The FTC has asked Walgreens to close or sell ~650 stores.
GNC Holdings (GNC) reported 3Q16 revenue of $628.0 million, a fall of 8.1%. Its gross profit margin and operating margin fell 240 bps and 170 bps, respectively.
GNC Holdings has a market cap of $1.5 billion. It fell by 25.5% and closed at $20.28 per share on July 28, 2016. It reported 2Q16 revenue of $673.2 million.
Walgreens (WBA) operates close to 8,200 pharmacies in the US. It is closely followed by CVS Health (CVS), which operates slightly fewer than 8,000 pharmacies.
Target has identified four signature categories it’s concentrating on to provide higher store and web traffic and sales: Baby, Style, Wellness, and Kids.
Walgreens Boots Alliance’s (WBA) sales rose 48.5% YoY (year-over-year) to $29 billion in 1Q16. The increase was largely driven by the consolidation of Alliance Boots’ operations.
Rite Aid’s (RAD) acquisition would improve Walgreens Boots Alliance’s (WBA) physical reach across the United States, increasing its store count by over 50%.
On October 27, 2015, Walgreens Boots Alliance (WBA) announced its intention to acquire Rite Aid for a total enterprise value of approximately $17.2 billion.
US drugstores typically generate revenues by selling prescription drugs, over-the-counter medications, health and beauty products, and general merchandise.
