Woops, a financial engineering screw-up.
As Walgreens missed earnings again, its CEO has announced the 2016 earnings outlook will not be met either.
Walgreens investors have relied on the board of Directors and Executives to provide business plans to enhance earnings, reduce uncertainty/risk, and return value to it owners/stockholders.
Walgreens CEO made a new statement to Reuters regarding its Corporate financial structure, this Structure is being looked into as they move into the last payment for the Alliance Boots buyout, and it may need to be re-engineered to escape losses.
As Debt to equity reflects borrowing costs and this effects dividend returns to stock holders, this a new problem stockholders will be facing.
The Alliance Boots full buyout includes its borrowing cost structure which is not in alignment with Walgreens capital borrowing structure.
And will need to be addressed/ reworked as you all will soon learn.
This maybe one of the many reasons Walgreens has been unable to meet Earnings projections, putting aside the loss of customers, which is as secondary issue management has avoided in accountability to shareholders.
KKR and Alliance Boots IMO understood these issues prior to this 2 step merger which Walgreens is now facing... in returning value to its share holders Walgreens will need to make numerous changes to its capital allocations moving forward..
Uncertainty to value has be introduced with Walgreens current managements buyout, and these refinancing/repayment of debt with forward borrowing costs to its investors has effected earning projections.
Well good luck with the management you investors picked to safe guard your money and remember Rite Aid had grand plans once also..
GLTA!
