Walgreens (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 Versus Wall St. Expectations: WAG beat the street, as analysts were expecting EPS of $0.54/share on revenues of $17.3 billion.
- 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.
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Disclosure: No position