Earnings - 29th Sept 2008

8:07AM Walgreen reports EPS in-line, revs in-line (WAG) 32.73 : Reports Q4 (Aug) earnings of $0.45 per share, in-line with the First Call consensus of $0.45; revenues rose 8.8% year/year to $14.6 bln vs the $14.67 bln consensus. Prescription sales, which accounted for 66% of sales in the quarter, climbed 7.9%. Adjusted for calendar shifts, prescription sales in comparable stores rose 2.8% in the quarter, while the number of prescriptions filled in comparable stores increased 0.6%. That compares to a 1.9% decrease in U.S. retail prescription volume (excluding Walgreens) during the same period, according to IMS Health and Walgreens figures. "Tough times are forcing people to make tough choices - delaying doctor visits and prescription use... Even with these challenges, our pharmacies are consistently performing ahead of the industry." Overall margins were negatively impacted by non-retail businesses, including specialty pharmacy, which have lower margins and are becoming a greater part of the total business. Retail pharmacy margins increased due to greater use of generics, while front end margins were essentially flat. Helping the front end was a shift toward higher margin items, including private brand products. Hurting margins were heavier than normal front end promotions.

6:44AM Cal-Maine Foods reports 1Q09 results (CALM) 37.91 : Reports Q1 (Aug) earnings of $0.47 per share, compared with $0.76 for the year-earlier period, and net sales of $206.9 mln, a 15.8% increase year/year. No First Call estimates are available. "Egg prices and total dozens sold were both up for the first quarter of fiscal 2009 compared with the same period last year. Demand for eggs was strong in both the retail and food service markets. However, our feed costs were dramatically higher and reduced the Company's earnings for the quarter compared with a year ago. Corn and soybean meal prices peaked in July, but have dropped substantially in the last few weeks. While estimates for the final crop yields vary widely, it is expected that feed prices will remain volatile and high for the year ahead. USDA statistics indicate that egg supply will remain flat for the next few months. All of Cal-Maine's operations continue to run smoothly."