Shares of Walgreens Boots Alliance (NASDAQ: WBA) were skyrocketing 14% higher as of 11:14 a.m. ET on Tuesday. The huge gain came after the pharmacy retailer announced its fiscal 2024 fourth-quarter results earlier in the morning.

Walgreens reported sales of $37.5 billion for the period ended Aug. 31, up 6% year over year. The average analysts’ estimate was for Q4 revenue of $35.75 billion, according to LSEG.

The company posted a net loss per share of $3.48 based on generally accepted accounting principles (GAAP). Its adjusted earnings per share came in at $0.39, down 40.8% year over year but higher than the consensus estimate of $0.36.

What investors really liked about Walgreens’ Q4 update

Normally, stocks don’t soar as much as Walgreens did after delivering modest quarterly revenue and earnings beats. What investors really liked about the company’s Q4 update was its plans to close around 1,200 stores over the next three years. Five hundred stores will be shut down in fiscal 2025.

Of Walgreens’ 8,700 or so U.S. stores, roughly one-quarter of them are unprofitable. Management thinks that its planned closures will immediately boost adjusted earnings and free cash flow.

Is Walgreens stock a buy?

Most investors will probably be better off staying on the sidelines with Walgreens for now. However, the company’s shares trade at only 4.2 times forward earnings. Walgreens has prospects of higher earnings with the planned store closures. Aggressive investors looking for a turnaround play might find this stock appealing.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.