On March 26, drugstore chain Walgreen
- Total sales grew 15%, as total same-store sales advanced 8.9%. Front-end comps, or those excluding prescription sales, improved 5.7%. Prescription comps moved ahead 10.9%.
- Net income grew nearly 25%, while diluted earnings grew almost 28%, thanks to share buybacks. Higher margins also helped boost bottom-line expansion.
- Walgreen opened a net 180 stores in the first half of fiscal 2007. It plans to open a net 400 stores for the full year, adding to the current 5,641 store count. Management's goal is to operate at least 7,000 stores by 2010, an increase of 24% from current levels.
- The company carries a four-star rating in the Motley Fool CAPS intelligence database, as does archrival CVS
(NYSE:CVS) , which just completed the acquisition of pharmacy benefit manager (PBM) Caremark. Rival Rite Aid(NYSE:RAD) also carries a four-star rating, as does PBM Medco(NYSE:MHS) . To see what others think -- and voice your own opinion -- head over to CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$13,934 |
$12,163 |
14.6% |
|
Net Profit |
$652 |
$524 |
24.5% |
|
EPS |
$0.65 |
$0.51 |
27.5% |
|
Diluted Shares |
1,007 |
1,020 |
(1.3%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
29.0% |
28.4% |
0.6 |
|
Operating Margin |
7.3% |
6.7% |
0.6 |
|
Net Margin |
4.7% |
4.3% |
0.4 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$958 |
$1,225 |
(21.8%) |
|
Accounts Rec. |
$1,979 |
$1,848 |
7.1% |
|
Inventory |
$6,531 |
$5,616 |
16.3% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,884 |
$3,270 |
18.8% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,369 |
$1,266 |
8.1% |
|
Capital Expenditures |
$799 |
$599 |
33.4% |
|
Free Cash Flow |
$570 |
$668 |
(14.6%) |
Find out why Fools always follow the money.
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann is long shares of Walgreen, but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
