Zacks Rank: Walgreens Boots carries a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks ESP: The Earnings ESP forWalgreens Boots is -0.44%.

Walgreens Bootsdoes not have the right combination of two main ingredients - a positive Earnings ESP and Zacks Rank #3 (Hold) or higher - needed for increasing the odds of an earnings beat.

Here is what our quantitative model predicts: It will help the company expand and optimize retail pharmacy network in key U.S. Per Walgreens Boots, this modified merger contract will extend its growth strategy and offer additional operational benefits. Post the new transaction’s initial closing, synergies of $300 million are expected to be entirely realized within four years of its initial completion. Federal Trade Commission (FTC) approval for the purchase of 1,932 stores, three distribution centers and related inventory from Rite Aid for a total value of $4.375 billion. In September 2017, Walgreens Boots announced the receipt of U.S. This development is expected to boost the top line in the fiscal fourth quarter. Also, in order to expand its footprint in Asia, the company launched its first Boots franchise store in South Korea in April 2017. Meanwhile, market growth is expected to be strong in certain emerging markets backed by the timing of price increase. Although the company is working to boost efficiency and provide high-quality, cost-effective pharmacy services, the near-term outlook remains bleak.

Management continues to witness lower profitability in Boots UK comparable pharmacy's gross profit due to lower margin products. In the third quarter of 2017, Walgreens Boots' gross margin contracted on account of reimbursement pressure and price inflation of branded drugs.

Of late, increased reimbursement pressures as well as generic drug cost inflation have been denting margins. We also note that slowdown in generic introduction has been affecting Walgreens Boots' margins.

Wba outlook read receipt