Walgreen Co. NYSE: WAG), the the nation's largest drugstore chain, is scheduled to discuss its fiscal fourth quarter 2009 results Tuesday in a conference call at 7:30 AM ET. You can catch the live webcast of the call on the company's website.
The Deerfield, Ill.-based pharmacy giant appointed a new treasurer and also increased its quarterly dividend during the three months that ended in August. Analysts surveyed by Thomson Reuters expect Walgreen to report that net income for that period fell 13.3% from a year ago to 39 cents per share. However, revenue for the quarter is expected to be 7.4% higher to $15.7 billion.
The forecast for the full year is for $1.98 per share (-8.9%) on $63.3 billion (+7.2%). But Walgreen has failed to beat earnings estimates in the past five quarters, missing by as much as a nickel per share.
The long-term EPS growth forecast is 13.3%, which is better than that of competitors CVS Caremark Corp. (NYSE: CVS) and Wal-Mart Stores Inc. (NYSE: WMT). Walgreen's earnings multiple is 15x. The First Call consensus recommendation remains to buy WAG. TheStreet.com expects it to "pummel" the sector in the impending flu season, but Zacks anticipates another earnings miss.
Walgreen shares have risen about 14% in the past three months and are trading near the 52-week high of $34.81.
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