This page has been archived and commenting is disabled.
How Walgreen EPS Just Beat Consensus Even As Its Revenues Missed
Moments ago Walgreen reported that it was the latest company to confirm that despite endless propaganda, the retail weakness in the most recent quarter - one ending November 30 - has spread to virtually all product lines, and as a result it missed revenue estimate of $19.59 billion, printing $19.55BN instead. Yet despite the top-line weakness, the stock is higher pre-market for one simple reason: as usual the algos were fooled by the bottom line, which beat by a whopping 6 cents, printing at $0.81 on $0.75 expected. But unlike most of its peers buying back their stock at a record pace, Walgreen barely engaged in the now generic stock repurchasing gimmicks.
So how did Walgreen succeed in boosting its aftertax EPS to beat expectations even as revenues missed expectations, especially with operating income in the quarter virtually unchanged from a year ago?
The answer, as shown in the chart below, is simple: WAG used the oldest trick in the book, and stretched its effective tax rate for GAAP purposes in the quarter to the lowest it could go.
Had Walgreen used the same tax rate as a quarter ago? It would have missed the bottom line non-GAAP expectations by about 5 cents.
And now add a few thousand other accounting fudges like this one, and one can see how the bulk of "earnings" growth in the S&P is nothing but vaporware and gimmickry.
»
- 5508 reads
- Printer-friendly version
- Send to friend
- advertisements -
Fun with numbers.
sneaky ninja
Well, that little trick won't last long (kick the can into 2015). Walgreens is in serious need of a share buy-back program like everyone else has.
and they will continue with the buy back and every other trick the game wants them to use ......just repeat "all is well"
Who cares? We need our massive doses of heavy metals injected into our bloodstream. We need them now and we need them for free! The flu is coming! C'mon Walgreens, gimme all that aluminum and mercury "medicine"!
Until the bottom drops out. Then they all rush to make 'one time' write offs of every thing they can think of. Why not, everyone else is doing it on the way up and on the way down.
Have to keep up appearences for the algos.......and for Wal-Green elites to make bonus.
That is still nothing compared a the earnings report of a PM miner. Talk about gimmickry.
Whoo-hoo, check out the heartbeat on the silver chart! Smackdown rebuked. Perhaps the bottom was just set?
How could they assume a tax 10% lower than all other periods? LOL
Anyway, bring out the deer for the Yen in headlights as central bank of Japan collapses.
Is it cheating if everyone does it?
Smoke n mirrors... errr, cigs n pharms.
Fortune 500 CEO : ' What's our earnings per share going to be this quarter ? '
Fortune 500 CFO : ' Whatever you would like it to be .... sir, yes sir ! '
Intentionally misleading graph starts at 25 instead of 0
If everyone lies and cooks the books, even the banks this stawk pumpathon can go on for a while longer.
This Federal Reserve is not your father's Federal Reserve. It comes out to pump stawks if the least bit of selling occurs.
When this scheme blows it should be big.
There can be only one! ....Highlander
And you thought you could build a business and compete on some level...lol
The U.S. economy grew at a 5.0% annual pace in the third quarter, matching the best performance since the third quarter of 2003. The increase in real gross domestic product was revised up from 3.9%, mainly because of consumer spending and business investment, the Commerce Department said Tuesday. Economists polled by MarketWatch had predicted GDP would be revised up to a seasonally adjusted 4.4%. Consumer spending, the main source of economic activity, was revised up to 3.2% from 2.2%. Spending on business fixed investment was revised up to 8.9% from 7.1%, while spending on equipment was raised to 11.0% from 10.7%. The rise in exports was also raised to % from 4.9%. The gain in business inventories was revised to $82.2 billion from $79.1 billion, a high level that could induce companies to scale back a little in the fourth quarter and perhaps impinge on growth. Inflation as measured by the PCE index was unchanged at a 1.5% annual rate.
Ha ha ha ha ha
The Winston Smith economy. Memory-hole and all.
The banksters need to repay us.
We are saved! Q3 GDP just revised to 5%. We pinocchio'd some folks!
Right in the ass.
Hey Walgreens.
Set up a Chinese based unit to suck up all of the profit as generics are marked up to US retail prices over there.
Voila! US stores show tiny profit and your Chinese unit hoards billions and becomes a hedge fund.
If you need more details, call pretty much any US corporation that figured this out 20 years ago...Apple, GE, GM...
lulz
Walgreens, CVS and other drug stores are more big corp welfare from the govt. They are pushing a lot of healthcare, minute clinics, more and more drugs through Obamacare to Walgreens and CVS.
ObamaCare was just a big corporate giveaway to give the poor and illegal aliens free healthcare paid for by making the middle class pay for it through higher premiums and less coverage.
In other words, white genocide. Here's hoping it restricts their current favorite form, cancer 'treatments'. I've been telling folks for years that if O'care does restrict these treatments, people will live longer, thus baffling 'experts'. I get the most confused looks from the sheeple. One shouldn't discuss mutton with them, I suppose.
methinks the country is about to get a lot healthier w pharmacy costs going out of reach. who knew?
Adn so the stock market continues to climb..
http://www.globaldeflationnews.com/sp-500-indexelliott-wave-update-for-w...
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
There flu shot numbers must be up so the ppt will support them.
Economy up 5% since june due to health care costs...lol
Cdc is trying to up that asap so they will be abel to add a zero next time for a sweet 50% growth in the economy. Walgren is changing there prices right now so everyone can buy buy buy. Oh and your going to need a booster shot in a week...lol
A few years ago both Wallgreen and CVS were my favorite places to shop for excellent sale items.
Recently though both seem totally oblivious to what I consider decent sale tactics. Prices overall now are, on average, about 20-25% higher than my local grocery stores on items like shaving cream and toothpaste. Worse are very common gray-zone tactics such as: Take a regular $2.29 shaving cream, increase the price to $2.89, then offer a BOGOH (buy one + another at ½ off) such that the price increases from the $2.29 to the “sale” of $2.78, and the average dumb American consumer can’t figure out that the sale is really not a deal at all. These days I avoid both like the plague.
Walgreen and CVS.....along with Dollar General.....have now become po-dunkville's Wal-Mart.
I should know.....I live in a po-dunkville in North Central Florida. 20 miles from the neareast Wally World in all directions.
But Lo and Behold......right across the street from each other is a CVS and a Walgreen. And right next door to the Walgreen is a Dollar General.
And I see that pricing tactic ALL the time.
I just pick up shit from their only if the coupon makes it cheaper for me NOT to drive to Wally World or if they are in the 75% percent off bin. And only if I REALLY...REALLY...need it.
Those BOGOH sales have always been bogus. I actually went in a few times thinking they were buy get one free, like the old days. My new rule of thumb. If the ad says BOGO(H) w/o any price listed then it's a scam and ignore.