Walgreen Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Walgreen Company (NYSE:WAG) will unveil its latest earnings on Tuesday, June 21, 2011. Walgreen Co. operates retail drug store and general merchandise. It is engaged in the retail sale of prescription and non-prescription drugs and general merchandise.

Walgreen Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating profit of 62 cents per share, a rise of 31.9% from the same quarter a year ago. Estimates range from net income of 56 cents per share to profit of 66 cents per share. Over the past three months, the consensus estimate has moved down from 63 cents. The consensus estimate is unchanged from a month ago. For the year, analysts are projecting net income of $2.60 per share, a rise of 22.6% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after beating the forecasts in the prior two. In the second quarter of the last fiscal year, the company reported profit of 80 cents per share versus a mean estimate of net income of 54 cents per share. In the first quarter, the company beat estimates by 8 cents.

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Wall St. Revenue Expectations: On average, analysts predict $18.33 billion in revenue this quarter, a rise of 6.6% from the year ago quarter. Analysts are forecasting total revenue of $72.07 billion for the year, from last year’s revenue of $67.42 billion.

Analyst Ratings: Analysts are bullish on this stock with 17 analysts rating it as a buy and none rating it as a sell. While the average rating for the stock remains a moderate buy, the strength of the rating has dwindled over the past three months.

Key Stats:

The company has now seen net income rise in three-straight quarters. In the second quarter of the last fiscal year, net income rose 10.5% and in the first quarter, the figure rose 18.7%.

Revenue has risen the past four quarters. Revenue increased 6% to $18.5 billion in second quarter of the last fiscal year. The figure rose 7.4% in first quarter from the year earlier and climbed 6.1% in fourth quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: drugstore.com, inc. (NASDAQ:DSCM), Graymark Healthcare Inc (NASDAQ:GRMH), CVS Caremark Corporation (NYSE:CVS), Rite Aid Corporation (NYSE:RAD), PetMed Express, Inc. (NASDAQ:PETS), China Nepstar Chain Drugstore Ltd. (NYSE:NPD), PharMerica Corporation (NYSE:PMC), BioScrip Inc. (NASDAQ:BIOS), Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and Medco Health Solutions Inc. (NYSE:MHS).

Recent Price Movement: Over the past three months, the stock price has risen $2.75 (6.7%) from $40.75 on March 18, 2011 to $43.50 on June 13, 2011. The stock price saw one of its best stretches over the last year between May 9, 2011 and May 16, 2011 when shares rose for six-straight days, rising 4.7% (+$2.01) over that span. It saw one of its worst periods between May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 1.6% (-70 cents) over that span. Shares are up $4.85 (+12.5%) year to date.

(Source: Xignite Financials)

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