Walgreens Earnings Cheat Sheet: Powering Ahead on Strong Revenues

S&P 500 (NYSE:SPY) component Walgreens (NYSE:WAG) reported its results for the fourth quarter. 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.

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Walgreens Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the drug store rose to $792 million (87 cents per share) vs. $470 million (48 cents per share) in the same quarter a year earlier. This marks a rise of 68.5% from the year earlier quarter.

Revenue: Rose 6.5% to $17.97 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: WAG reported adjusted net income of 57 cents per share. By that measure, the company beat the mean estimate of 55 cents per share. Analysts were expecting revenue of $17.88 billion.

Quoting Management: “Walgreens delivered strong performance and growth for the quarter and the year by continuing our relentless focus on providing convenience and value to consumers, and cost-effective pharmacy, health and wellness solutions to the millions of patients we serve every day,” said Walgreens President and CEO Greg Wasson. “Through constant innovation and effective execution of our key initiatives, we continued to make substantial progress this year in the transformation of Walgreens to become the first choice for health and daily living – meeting the needs of both consumers and patients in today’s challenging economy and changing health care system.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 30.2% and in the second quarter, the figure rose 10.5%.

Revenue has risen the past four quarters. Revenue increased 6.8% to $18.37 billion in the third quarter. The figure rose 8.9% in the second quarter from the year earlier and climbed 6% in the first quarter from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 65 cents versus a mean estimate of net income of 62 cents per share.

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), Target (NYSE:TGT), PharMerica Corporation (NYSE:PMC), Walmart (NYSE:WMT), BioScrip Inc. (NASDAQ:BIOS), and Medco Health Solutions Inc. (NYSE:MHS).

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(Source: Xignite Financials)

 

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