Earnings Cheat Sheet: Walgreen Pops Some Profit Pills

Walgreen Co. (WAG) is popping some serious profit pills. In our Walgreens earnings preview, we said “even a mediocre report may be cause for a move to the upside” in shares of the ubiquitous neighborhood drugstore. Turns out the report was excellent and the stock is soaring over 11%.

Earnings: Earnings increased to $470 million ($0.49 cents a share) from $436 million ($0.44 cents a share) last year.

Revenues: Sales increased 7.4% to $16.87 billion.

Notable Stats: Prescription sales (66% of total revenue) increased 6.5% and 1.6% on a same-store basis. Prescription volume popped 3.3%. Market share in retail pharmacy was 19.5% (+0.6%). Drugstore count was up 8.1% to 7,561 drugstores.

Front-end same-store sales (sales of food, cosmetics, junk, etc.) edged up 1.2%. The network of certified immunizers and other health-care professionals grew from 16,000 to 26,000 since last year’s flu season.

Technicals: As you can see in the chart below, shorts are getting their faces ripped off as WAG shares spiked over the 200 DMA.

Check out more research on WAG: Is Walgreens Ready to Rally? >

Disclosure: No position in WAG.