NEW YORK (TheStreet) -- Walgreens Boots Alliance (WBA) - Get Walgreens Boots Alliance Inc. Report stock is up 1.37% to $90.71 in mid-morning trading on Tuesday, ahead of the release of the company's fiscal 2015 fourth quarter and full year financial results, expected before the market open on Wednesday.
The financial report will be the pharmacy chain's first annual report since the merger between Walgreen Co. and Alliance Boots GmbH was completed last December.
Walgreens acquired Alliance Boots for $9.3 billion in cash and 227.7 million shares between 2012 and 2014.
The Deerfield, IL-based company is expected to report a year-over-year increase in earnings and revenue for the fourth quarter and full fiscal 2015.
Analysts are expecting earnings of 81 cents per share on $28.45 billion in revenue for the quarter.
Before the merger was completed, Walgreens posted adjusted earnings of 74 cents per diluted share on revenue of $19.06 billion for the fiscal 2014 fourth quarter.
Analysts have estimated earnings of $3.80 per share on $103.47 billion in revenue for the fiscal year, compared with adjusted earnings of $3.28 per diluted share on $76.39 billion in revenue that Walgreens reported last year.
Separately, TheStreet Ratings team rates WALGREENS BOOTS ALLIANCE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate WALGREENS BOOTS ALLIANCE INC (WBA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 48.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 82.3% when compared to the same quarter one year prior, rising from $714.00 million to $1,302.00 million.
- Net operating cash flow has increased to $1,822.00 million or 43.23% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.38%.
- The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.70 is somewhat weak and could be cause for future problems.
- Powered by its strong earnings growth of 59.45% and other important driving factors, this stock has surged by 44.11% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: WBA