Walgreen's EPS A Nickel Above Consensus

Walgreen Company. WAG reported FQ4 EPS of $.49, a nickel above Consensus. According to Deutsche Bank, "The solid beat was driven by strong GMs (+73bp y/y), boosted by the continuing roll-out of the CCR initiative and the decline in Rewire costs. FCF was very strong and was utilized to buy back over $1B in shares in FQ4. SG&A growth, ex- Duane Reade & restructuring costs was well-controlled. Maintain Hold rating as valuation fair given erratic sales going into tough compares, limited generic benefit to FY11 earnings and SG&A leverage challenges." WAG closed Tuesday at $33.81