The 10-second takeaway
For the quarter ended Aug. 31 (Q4), Walgreen met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins contracted.
Walgreen logged revenue of $17.08 billion. The 18 analysts polled by S&P Capital IQ anticipated a top line of $17.17 billion on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $17.97 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 $0.63. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS of $0.39 for Q4 were 55% lower than the prior-year quarter's $0.87 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 28.3%, 10 basis points better than the prior-year quarter. Operating margin was 3.4%, 170 basis points worse than the prior-year quarter. Net margin was 2.1%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $17.73 billion.
Next year's average estimate for revenue is $74.31 billion.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 2,099 members out of 2,246 rating the stock outperform, and 147 members rating it underperform. Among 538 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 506 give Walgreen a green thumbs-up, and 32 give it a red thumbs-down.
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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 of Motley 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.