Walgreens Pops Up 10% Upon Earnings Beat

Author

Adam Garcia
January 10, 2025

Good morning. It's January 10th, and today we’ll look at the latest news on Walgreens, Constellation Energy, and Delta Airlines.

Industry Disruptor

This publicly traded biotech company is gaining attention with its groundbreaking drug candidate, NV-387, targeting a massive $2.5 to $4.3 billion market.

Imagine a single treatment effective against RSV, COVID-19, Influenza, Bird Flu, and even Monkey Pox. NV-387’s groundbreaking technology offers broad-spectrum protection, addressing the unmet need for antivirals that remain effective even as viruses mutate.

Positioned at the forefront of nanomedicine, this company is expanding its innovative pipeline and solidifying its leadership in antiviral therapies.

For investors, the potential for long-term growth is as promising as the global health impact of this revolutionary treatment.

Futures 📈

What to Watch

Earnings Calendar

  • Constellation Brands [STZ]: Premarket

  • Delta Air Lines [DAL]: Premarket

  • TD Synnex [SNX]: Premarket

  • Walgreens Boots Alliance [WBA]: Premarket

  • Neogen [NEOG]: Premarket

  • Tilray Brands [TLRY]: Premarket

  • WD-40 [WDFC]: Aftermarket

Economic Reports

  • U.S. employment report [Dec]: 8:30 a.m. 

  • U.S. unemployment rate [Dec]: 8:30 a.m.

  • U.S. hourly wages [Dec]: 8:30 a.m.

  • UMich consumer sentiment (prelim) [Jan]: 10:00 a.m.

Retail

Walgreens Tops Q1 Expectations, Maintains Annual Outlook

Walgreens Boots Alliance (NASDAQ: WBA) is posting higher than expected profit for its first fiscal quarter, signaling early progress in CEO Tim Wentworth's turnaround strategy.

The company’s adjusted earnings of $0.51 per share is higher than analysts' average estimate of $0.37. The firm is also maintaining its full-year profit guidance of $1.40 to $1.80 per share.

Walgreens' U.S. retail pharmacy segment has sales of $30.9 billion for the quarter ending November 30, outperforming the projected $29.1 billion. However, the company still has a net loss of $0.31 per share, reflecting store closure costs and other one-time charges.

Shares of Walgreens are rising by 10% in premarket trading as investors react to the positive earnings report.

The company has faced significant challenges, including persistently low drug reimbursement rates and cautious consumer spending. In response, Walgreens has launched a $1 billion cost-cutting initiative, plans to close over 1,200 stores, and streamlined its leadership structure.

Reports have also emerged that Walgreens is exploring a potential sale to private equity firm Sycamore Partners, although the company has declined to comment on these speculations.

Power

Constellation Buys Calpine, Expands Clean Energy Portfolio in $26B Power Industry Deal

Constellation Energy (NASDAQ: CEG) announced today its acquisition of privately held Calpine Corp in a cash-and-stock transaction valued at $26.6 billion, including debt. The deal positions Constellation as a leader in clean energy, combining nearly 60 gigawatts (GW) of zero- and low-emission capacity across nuclear, natural gas, and geothermal sources.

Constellation’s shares are surging 12% before the opening bell. The acquisition comes as U.S. electricity demand is projected to reach record highs this year, according to the Energy Information Administration. This move underscores the growing importance of clean and efficient energy sources in meeting future demand.

Calpine, a significant player in geothermal and natural gas energy, had been privately owned since 2017 by Canadian Pension Plan Investment, Energy Capital Partners, and Access Industries. Reuters first reported in May 2024 that these investment firms were exploring strategic options for Calpine, including a potential sale.

This acquisition marks the largest deal in the U.S. power sector since TXU Corp’s $45 billion leveraged buyout in 2007. Constellation’s expanded portfolio signals a commitment to bolstering clean energy infrastructure and maintaining a competitive edge in the evolving energy landscape.

Crypto

Back in 2017, President Trump’s inauguration marked the start of a historic crypto surge, turning modest investments into extraordinary gains. Coins like Monero, Stellar, and ReddCoin delivered life-changing returns for those who acted early.

Now, as America prepares for its first pro-crypto president, the stage is set for another potential breakthrough. Tech expert Jeff Brown believes this moment could redefine the crypto market and create unprecedented opportunities for investors.

Jeff has identified specific “Trump coins” he believes are poised to soar under the new administration, with one in particular that could deliver exponential returns.

Airlines

Delta Beats Earnings Estimates Amid Travel Boom

Delta Air Lines (NYSE: DAL) reported a record-breaking 2024 today, achieving its highest-ever annual revenue at $61.6 billion.

The airline’s Q4 earnings are higher than expected, with adjusted net income reaching $1.203 billion and revenue of $14.43 billion, both beating analyst forecasts. Adjusted earnings per share is at $1.85, exceeding the $1.76 consensus estimate.

CEO Ed Bastian expressed optimism for 2025, citing double-digit growth in corporate bookings and robust international demand. The airline’s stock is up 8% in premarket trade.

Delta also forecasts $4 billion in free cash flow for 2025, with plans to expand its fleet, including introducing 40 new aircraft and potentially launching the Airbus A350-1000 by early 2026.

Despite industry-wide challenges such as aircraft delivery delays, Delta maintained its position as the most on-time airline in North America in 2024, with 83% of flights arriving within 15 minutes of schedule.

The airline is also enhancing customer experiences through strategic partnerships, including a new collaboration with Uber, announced at CES 2025, to benefit SkyMiles members. “We live in an experience economy,” Bastian emphasized, highlighting Delta’s focus on technology and premium value offerings.

Movers and Shakers

Vision Marine Technologies Inc. [VMAR] - Last Close: $1.52

Vision Marine Technologies Inc. (VMAR) is into sustainable electric marine propulsion solutions.

The firm announced a collaboration with Calip Group yesterday to produce custom cooling plates for their high-voltage marine battery packs, enhancing thermal management and performance, which is leading to a 70% premarket surge in its share price.

My Take: Its an under-$5M market cap firm which has struggled with profitability in recent quarters, and its stock is down 98% in the last year. If you’re looking to ride this wave it would be best to hedge your bets first.

Akoya BioSciences, Inc. [AKYA] - Last Close: $2.66

Akoya Biosciences (AKYA) is a life sciences technology company specializing in spatial biology solutions for discovery and clinical research.

Quanterix Corporation (QTRX) is acquiring this firm in an all-stock transaction, which is causing both stocks to surge in premarket trade.

While AKYA is up 22%, QTRX shares are also rising 6.5%.

My Take: QTRX believes that the merger will lead to $40M in cost saving due to synergies from the deal. Investors should keep a close watch on this stock to see how the merged entity progresses.

Microvast Holdings, Inc. [MVST] - Last Close: $1.87

Microvast Holdings, Inc. specializes in designing, developing, and manufacturing lithium-ion battery solutions for EVs and energy storage systems.

The company announced a significant breakthrough in its True All-Solid-State Battery (ASSB) technology yesterday, which eliminates liquid electrolytes and utilizes a bipolar stacking design to enhance conductivity and operational stability.

The news is leading to a 37% surge in the stock price before the opening bell today.

My Take: Microvast's recent breakthrough and strong financial performance, including a 26.6% y-o-y revenue increase in Q3 ’24 make it an exciting stock to keep on your radar.

Health

The world is battling an evolving threat. Viruses like RSV, COVID-19, Influenza, and even Monkey Pox continue to mutate, rendering many current treatments ineffective. The need for a groundbreaking solution has never been greater.

A publicly traded biotech company is stepping up with NV-387—a lead drug candidate targeting a $2.5 to $4.3 billion market.

Unlike anything seen before, this broad-spectrum antiviral could treat a range of viruses while remaining effective against mutations.

With a cutting-edge pipeline and growing demand for better antiviral solutions, this company is positioned to lead the nanomedicine space.

For investors, it represents not just a healthcare breakthrough but a chance to align with a transformative market leader.

Everything Else

  • Seven & i’s founding family eyes a historic buyout with Apollo and Itochu support.

  • Bloks Group soars 41% on debut, creating a new Hong Kong billionaire.

  • Strong AI chip sales propel TSMC’s highest annual revenue since going public.

  • The manufacturing sector drove India’s industrial output to 5.2% growth in November.

  • Tesla’s revamped Model Y aims to maintain EV dominance in China amidst rising competition.

  • The Los Angeles wildfires are set to trigger a record $10 billion in insured losses, analysts say.

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.