Walgreen's Upcoming Earnings: What You Need To Know

Updated

Walgreen (NYS: WAG) is expected to report Q1 earnings on Dec. 21. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Walgreen's revenues will drop -3.2% and EPS will increase 9.5%.

The average estimate for revenue is $17.58 billion. On the bottom line, the average EPS estimate is $0.69.


Revenue details
Last quarter, Walgreen tallied revenue of $17.08 billion. GAAP reported sales were 5.0% lower than the prior-year quarter's $17.97 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.63. GAAP EPS of $0.39 for Q4 were 55% lower than the prior-year quarter's $0.87 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 28.3%, 10 basis points better than the prior-year quarter. Operating margin was 4.0%, 120 basis points worse than the prior-year quarter. Net margin was 2.1%, 230 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $73.75 billion. The average EPS estimate is $3.23.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,097 members out of 2,238 rating the stock outperform, and 141 members rating it underperform. Among 567 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 538 give Walgreen a green thumbs-up, and 29 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walgreen is hold, with an average price target of $37.90.

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The article Walgreen's Upcoming Earnings: What You Need To Know originally appeared on Fool.com.

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 no positions in the stocks mentioned above. 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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