Walgreen Meets on Revenue, Misses on EPS

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Walgreen (NYS: WAG) reported earnings on Dec. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ending Nov. 30 (Q1), Walgreen met expectations on revenue and missed on earnings per share.

Compared to the prior-year quarter, revenue expanded, and earnings per share grew slightly.

Margins dropped across the board.

Revenue details
Walgreen logged revenue of $18.2 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $18.3 billion. Sales were 4.7% higher than the prior-year quarter's $17.3 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.63. The 23 earnings estimates compiled by S&P Capital IQ averaged $0.67 per share. GAAP EPS of $0.63 for Q1 were 1.6% higher than the prior-year quarter's $0.62 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.1%, 40 basis points worse than the prior-year quarter. Operating margin was 5%, 50 basis points worse than the prior-year quarter. Net margin was 3.1%, 20 basis points worse than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $18.8 billion. On the bottom line, the average EPS estimate is $0.84.

Next year's average estimate for revenue is $73.3 billion. The average EPS estimate is $2.78.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,033 members out of 2,156 rating the stock outperform, and 123 members rating it underperform. Among 553 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 528 give Walgreen a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walgreen is outperform, with an average price target of $38.18.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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