The company has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health care company.
Walgreens Boots Alliance reported a net loss of $6 billion in Q2 due to VillageMD decline
Walgreens U.S retail pharmacy segment generated $28.86 billion in sales in the fiscal second quarter, an almost 5% increase from the same period last year and reflects strong execution in pharmacy services.
Walgreens Boots Alliance, Inc. reported a steep net loss for the fiscal second quarter of 2024 as it recorded a hefty nearly $6 billion charge related to the decline in value of its investment in primary-care provider VillageMD. The company has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health care company.
Walgreens U.S retail pharmacy segment generated $28.86 billion in sales in the fiscal second quarter, an almost 5% increase from the same period last year and reflects strong execution in pharmacy services.
Walgreens reported fiscal second-quarter sales that beat Wall Street's expectations
The company lowered the high end of its full-year adjusted earnings outlook in part due to a challenging retail environment in the U.S.
Walgreens posted a steep net loss for the quarter as it recorded a hefty nearly $6 billion charge related to the decline in value of its investment in primary-care provider VillageMD
The company has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health-care company.
Walgreens' new CEO, Tim Wentworth, works to slash costs and steer the company out of a rough spot
The results come as Walgreens faced weakening demand for Covid products, low pharmacy reimbursement rates, an unsteady push into health care and a challenging macroeconomic environment.
Walgreens has laid off employees, closed unprofitable stores and used artificial intelligence to make its supply chain more efficient
The company narrowed its fiscal 2024 adjusted earnings guidance to between $3.20 and $3.35 per share
That compares with the company's previous outlook of $3.20 to $3.50 per share.
Analysts surveyed by LSEG expect full-year adjusted earnings of $3.24 per share
Walgreens reported a net loss of $5.91 billion, or $6.85 per share, for the quarter
That compares with a net income of $703 million, or 81 cents per share, for the same period a year ago.
Excluding certain items, including the $5.8 billion non-cash charge related VillageMD, adjusted earnings per share were $1.20 for the quarter
The company booked sales of $37.05 billion in the quarter
That's a roughly 6% jump from the same period a year ago and reflects sales growth across its three business segments.
Walgreens U.S. health-care division stood out as sales jumped about 33% in the fiscal second quarter compared with the same period a year ago
VillageMD's acquisition of multispecialty care provider Summit Health and growth across all businesses in the segment on a pro-forma basis contributed to this increase.
Walgreens U.S. retail pharmacy segment generated $28.86 billion in sales in the fiscal second quarter
That's an almost 5% increase from the same period last year and reflects strong execution in pharmacy services.
The company said that comparable sales climbed 8.7% due to price inflation in brand medications and 'strong execution' in pharmacy services.
Total prescriptions filled in the quarter including immunizations totaled 305.7 million, a more than 2% increase from the same period a year ago
Retail sales for the quarter fell 4.5% from the prior-year quarter and comparable retail sales declined 4.3% due to factors such as weaker respiratory season
Walgreens international segment posted $6.02 billion in sales in the fiscal second quarter, an increase of more than 6% from the year-ago period
The company said that Boots, its U.K subsidiary, grew by 3%.
Accuracy
Walgreens has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health-care company.
Deception
(50%)
The article is deceptive in several ways. Firstly, the title mentions that Walgreens has beaten Wall Street's expectations for sales but fails to mention that it also lowered its full-year adjusted earnings outlook. This creates a false impression of financial success when there are actually concerns about profitability. Secondly, the article uses vague language such as 'challenging retail environment' and 'early wind-down of its sales-leaseback program' to explain why Walgreens is facing hurdles in the U.S., without providing specific details or evidence for these claims. This creates a lack of transparency and accountability, which are important values in journalism. Finally, the article quotes analysts surveyed by LSEG but does not disclose their sources or provide any context for how they were selected or what their qualifications are. This makes it difficult to evaluate the credibility of these opinions and creates a lack of trustworthiness in the reporting.
The article mentions that Walgreens has beaten Wall Street's expectations for sales but fails to mention that it also lowered its full-year adjusted earnings outlook. This is an example of deceptive omission by omission.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Walgreens has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health-care company. However, this statement is not supported with any evidence or data. Secondly, the author uses inflammatory rhetoric by stating that Walgreens has been facing weakening demand for Covid products and low pharmacy reimbursement rates. This statement is also unsupported without any evidence or data to back it up. Thirdly, the author uses a dichotomous depiction of the retail environment in the US as being challenging when reporting on Walgreens' sales performance. However, this statement is not supported with any evidence or data to back it up.
The company also posted a steep net loss for the quarter as it recorded a hefty nearly $6 billion charge related to the decline in value of its investment in primary-care provider VillageMD.
Walgreens Boots Alliance lost nearly $6 billion in its fiscal 2024 second quarter as the company grapples with the loss in value of its investment in doctor-staffed clinic operator VillageMD.
VillageMD is shuttering about 160 clinics due to not being able to fill their so-called 'patient panels' which are a certain number of individual patients under the care of a specific provider.
Accuracy
Walgreens reported fiscal second-quarter sales that beat Wall Street's expectations
The company lowered the high end of its full-year adjusted earnings outlook in part due to a challenging retail environment in the U.S.
Walgreens posted a steep net loss for the quarter as it recorded a hefty nearly $6 billion charge related to the decline in value of its investment in primary-care provider VillageMD
The company has been closing dozens of VillageMD clinics amid financial woes and sees the business as critical to its ongoing push to transform from a major drugstore chain into a large health-care company.
Walgreens's new CEO, Tim Wentworth, works to slash costs and steer the company out of a rough spot
The results come as Walgreens faced weakening demand for Covid products, low pharmacy reimbursement rates, an unsteady push into health care and a challenging macroeconomic environment.
Walgreens has laid off employees, closed unprofitable stores and used artificial intelligence to make its supply chain more efficient
The company narrowed its fiscal 2024 adjusted earnings guidance to between $3.20 and $3.35 per share
That compares with the company's previous outlook of $3.20 to $3.50 per share.
Analysts surveyed by LSEG expect full-year adjusted earnings of $3.24 per share
Walgreens reported a net loss of $5.91 billion, or $6.85 per share, for the quarter
That compares with a net income of $703 million, or 81 cents per share, for the same period a year ago.
Excluding certain items, including the $5.8 billion non-cash charge related VillageMD, adjusted earnings per share were $1.20 for the quarter
The company booked sales of $37.05 billion in the quarter
That's a roughly 6% jump from the same period a year ago and reflects sales growth across its three business segments.
Walgreens U.S. health-care division stood out as sales jumped about 33% in the fiscal second quarter compared with the same period a year ago
VillageMD's acquisition of multispecialty care provider Summit Health and growth across all businesses in the segment on a pro-forma basis contributed to this increase.
Walgreens U.S. retail pharmacy segment generated $28.86 billion in sales in the fiscal second quarter
That's an almost 5% increase from the same period last year and reflects strong execution in pharmacy services
The company said that comparable sales climbed 8.7% due to price inflation in brand medications and 'strong execution' in pharmacy services.
Total prescriptions filled in the quarter including immunizations totaled 305.7 million, a more than 2% increase from the same period a year ago
Retail sales for the quarter fell 4.5% from the prior-year quarter and comparable retail sales declined 4.3% due to factors such as weaker respiratory season
Walgreens international segment posted $6.02 billion in sales in the fiscal second quarter, an increase of more than 6% from the year-ago period
The company said that Boots, its U.K subsidiary, grew by 3%.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(80%)
None Found At Time Of
Publication
Bias
(80%)
The article reports that Walgreens Boots Alliance lost nearly $6 billion in its fiscal 2024 second quarter as the company grapples with the loss in value of its investment in doctor-staffed clinic operator VillageMD. The author also mentions that VillageMD is shuttering about 160 clinics and has exited or already notified patients that it is exiting Florida, Indiana, Chicago, Boston, Rhode Island and Las Vegas. This suggests a bias towards the negative impact of Walgreens' investment in VillageMD on their financial performance.
The retail pharmacy giant said Thursday its financial results included a $5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill.
VillageMD, which operates standalone doctor practices and physician-staffed clinics attached to Walgreens, is shuttering about 160 clinics, a company spokeswoman said.
Walgreens Boots Alliance lost nearly $6 billion in its fiscal 2024 second quarter as the company grapples with the loss in value of its investment in doctor-staffed clinic operator VillageMD.
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a financial interest in VillageMD as they are reporting on the $6 billion loss in value of their investment. The article also mentions Shields Health Solutions which is another company that may have ties to VillageMD.
$5.8 billion after-tax non-cash impairment charge related to VillageMD goodwill
The company lowered the top end of its forecast range for full-year adjusted earnings to $3.20 to $3.35 a share
Walgreens reported fiscal second-quarter sales that beat Wall Street's expectations
Walgreens U.S retail pharmacy segment generated $28.86 billion in sales in the fiscal second quarter
Accuracy
Walgreens Boots Alliance Inc. narrowed its fiscal 2024 guidance even as the drugstore chain beat Wall Street's estimates for second-quarter profit and revenue.
The company lowered the high end of its full-year adjusted earnings outlook in part due to a challenging retail environment in the U.S.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author uses a sensationalist title that implies Walgreens has done something wrong or unexpected when it hasn't. Secondly, the author quotes an analyst who says 'Walgreens Boots Alliance Inc.' narrowed its fiscal 2024 guidance even as the drugstore chain beat Wall Street estimates for second-quarter profit and revenue', which is a lie by omission because Walgreens did not actually narrow its forecast range. Thirdly, the author uses selective reporting to only mention that Walgreens sold $992 million worth of Cencora Inc. shares in February without disclosing any other details about this sale or how it affected their earnings.
The author quotes an analyst who says 'Walgreens Boots Alliance Inc.' narrowed its fiscal 2024 guidance even as the drugstore chain beat Wall Street estimates for second-quarter profit and revenue', which is a lie by omission because Walgreens did not actually narrow its forecast range.
The author uses selective reporting to only mention that Walgreens sold $992 million worth of Cencora Inc. shares in February without disclosing any other details about this sale or how it affected their earnings.
The title implies something unexpected has happened at Walgreens when nothing out of the ordinary has occurred.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Walgreens beat Wall Street's estimates for second-quarter profit and revenue without providing any evidence or context about what these estimates were based on. Secondly, the author presents a dichotomous depiction of the retail environment as challenging while also mentioning lower earnings due to selling $992 million worth of Cencora Inc. shares in February, which suggests that there may be other factors at play. Lastly, the author uses inflammatory rhetoric by stating that Walgreens lowered its full-year adjusted earnings forecast range without providing any evidence or context about why this was necessary.
Walgreens beat Wall Street's estimates for second-quarter profit and revenue.
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
Fiona Rutherford has a conflict of interest on the topics of Walgreens Boots Alliance Inc., fiscal 2024, guidance range and $3.20 to $3.50 a share as she is an author for Bloomberg News which owns Cencora Inc.
