Walgreen (NYS: WAG) reported earnings March 27. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 28 (Q2), Walgreen beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share contracted slightly.
Gross margins expanded, operating margins contracted, net margins dropped.
Walgreen notched revenue of $18.65 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $18.42 billion on the same basis. GAAP reported sales were 0.8% higher than the prior-year quarter's $18.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.78. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.77 per share. GAAP EPS of $0.78 for Q2 were 2.5% lower than the prior-year quarter's $0.80 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.9%, 10 basis points better than the prior-year quarter. Operating margin was 5.9%, 70 basis points worse than the prior-year quarter. Net margin was 3.7%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $18.04 billion. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $72.40 billion. The average EPS estimate is $2.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,075 members out of 2,216 rating the stock outperform, and 141 members rating it underperform. Among 542 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 514 give Walgreen a green thumbs-up, and 28 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 $36.60.
If you're interested in retailers like Walgreen as investments, you should check out the retail concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
Add Walgreen to My Watchlist.
At the time thisarticle 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. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.