Seeking Alpha

EPSDay's  Instablog

EPSDay
Send Message
EPSDay is dedicated to bring real research to the public. Earnings day for most stocks usually sees high volatility. Did you ever ask why? The Reason; most investors are wrong in their forecasts. Brokerage firms usually rely on the company’s guidance and could even lose business from such... More
My company:
EPSDay
My blog:
EPSDay
  • WAG Beats Earnings And We Expect A Positive Conference Call At 8:30 EDT 0 comments
    Oct 1, 2013 8:52 AM | about stocks: WBA

    Walgreen Company ($WAG) beat earnings as we expected in a note to our clients yesterday. They reported $.73 adjusted versus consensus expectations of $.72. This wasn't such a huge surprise but they missed last quarter and this is likely a relief to investors. The stock looks up in the pre-market.

    There is an earnings conference call at 8:30 AM EDT.

    What's important for the conference call is we believe that, being a year-end call, they will focus investor attention on their longer term goals. These goals are for 2016 and if investors do the math on their previous long term targets, the consensus looks low for this upcoming year and further out. We believe this can cause more upside for the stock potentially in the near and longer term.

    We thought there was upside this quarter because of the accelerated pace of the front-end sales which carry higher margins. Also, last quarter seemed to be hit by one-time factors which we thought would not reoccur.

    We still have two more quarters of easy sales comparisons, so the pick-up in comp store sales could continue.

    Our next pick is for $ISCA who reports October 3rd.

    #in

    Disclosure: I am long WAG.

    Additional disclosure: which could change at any time.

    Themes: earnings Stocks: WBA
Back To EPSDay's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.