Walgreen (NYSE: WAG) reported earnings on June 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 31 (Q3), Walgreen met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased.

Gross margins grew, operating margins shrank, net margins grew.

Revenue details
Walgreen reported revenue of $18.34 billion. The 15 analysts polled by S&P Capital IQ looked for revenue of $18.48 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
EPS came in at $0.85. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.90 per share. Non-GAAP EPS of $0.85 for Q3 were 35% higher than the prior-year quarter's $0.63 per share. GAAP EPS of $0.65 for Q3 were 4.8% higher than the prior-year quarter's $0.62 per share.

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

Margin details
For the quarter, gross margin was 28.5%, 30 basis points better than the prior-year quarter. Operating margin was 4.7%, 20 basis points worse than the prior-year quarter. Net margin was 3.4%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $18.00 billion. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $72.32 billion. The average EPS estimate is $3.10.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,100 members out of 2,247 rating the stock outperform, and 147 members rating it underperform. Among 602 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 578 give Walgreen a green thumbs-up, and 24 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 $49.58.

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