Citi Updates WAG F2Q11 EPS Preview

Citi has reported on the estimated EPS of Walgreen Co. WAG, which Citi had raised to $0.80.

Cit writes, “We are raising our F2Q11 EPS to $0.80, up from $0.78 prev., vs. consensus of $0.80, and $0.68 LY (see Figure 1 for our assumptions). We are also raising our FY2011 estimates to $2.56, up from $2.54 prev. WAG faces easier compares in F2Q11, due to the weaker flu season last year, and front-end (FE) sales trends are improving. We believe WAG will continue to generate cost savings from the $1B Rewiring for Growth strategy, which should provide a significant benefit to profits YOY.”

WAG is rated Hold/Medium Risk and has $43 PT.

WAG closed at $41.07 yesterday.