Citi Reiterates 2M Rating On Walgreen

According to Citi, Walgreen WAG reported F3Q11 EPS of $0.65 per diluted share, above its estimate of $0.63, above consensus of $0.62, and vs. $0.52 last year (excld. one-time items LY). Citi said that reported F3Q11 EPS included a (-$0.01)/share impact from restructuring and restructuring-related costs associated with WAG's Rewiring for Growth initiative. “The EPS upside was driven by greater gross margin expansion, lower interest expense, and a lower tax rate, somewhat offset by greater SG&A deleverage vs. our estimates. We reiterate our 2M rating for WAG.” Walgreen closed yesterday at $43.28.