EARNINGS PREVIEW

Walgreen to report 4Q results

[September 28, 2010]  NEW YORK (AP) -- Walgreen Co., the largest U.S. drugstore chain, reports its fiscal fourth-quarter results before the stock market opens Tuesday.

WHAT TO WATCH FOR: For drugstores, flu season started earlier than ever this year. Walgreen and its rivals CVS Caremark Corp. and Rite Aid Corp. all started selling flu vaccinations in mid-August. Walgreen is selling shots and nasal sprays at almost all of its 7,560 stores. That's only a few weeks in its fourth quarter, but the company could give an update on demand in September.

Earlier this month, Walgreen said its sales rose 7.6 percent to $16.89 billion during the fourth quarter. Sales at stores open at least one year grew 1.5 percent.

Investors also will be looking for details on the company's savings plan and its efforts to boost sales of "front end" products like cosmetics and food. The Deerfield, Ill., company has said it has eliminated $1 billion in annual expenses.

Walgreen's fiscal year ended Aug. 31. Wall Street will be looking at the company's outlook for fiscal 2011.

WHY IT MATTERS: Walgreen is the biggest drugstore chain in the U.S., with locations in all 50 states.

WHAT'S EXPECTED: Analysts polled by Thomson Reuters expect a profit of 44 cents per share and $16.84 billion in revenue, on average.

In fiscal 2011, analysts are forecasting a profit of $2.46 per share and revenue of $71.64 billion.

LAST YEAR'S QUARTER: Walgreen reported a profit of $436 million, or 44 cents per share, in the fourth quarter of fiscal 2009. That was down 2 percent from the previous year. Its revenue rose 8 percent to $15.7 billion.

[Associated Press]

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