Here’s How Walgreens Beat Earnings Expectations
Walgreens (NYSE:WAG) crushed Wall Street’s earnings expectations on a large profit beat. As a result, shares of the drugstore are trading up over 6%.
Walgreens Earnings Cheat Sheet
Earnings: Increased 19% to a profit of $580 million ($0.62/share) versus $489 million ($0.49/share) YoY.
Revenue: Up 6% YoY to $17.3 billion.
Actual vs. Wall St. Expectations: WAG beat the street, as analysts were expecting EPS of $0.54/share on revenues of $17.3 billion.
Notable Stats: Comparable-store sales increased 0.8%.
Gross profit margin increased 0.8 to 28.5%.
Non-pharmacy (i.e., front-end) comparable sales rose 0.4%.
Prescription sales (~66% of total sales) rose 5.3%. Prescription sales in comparable stores rose 0.9%.
Did You Hear That? President and CEO of Walgreen Company Greg Wasson said, “Our performance was driven by our continued focus on gross profit margins, cost control and the strategic slowing of our new store openings.”
Commentary: Shares of WAG are testing 2-year highs. The stock is comfortably above the 50 and 200DMA.
Disclosure: No holdings in companies mentioned.