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Walgreen’s Q4 Profit Surges; Adjusted Net Beats View (WAG)

Drug store chain operator Walgreen Company ( WAG ) on Tuesday posted a 69% gain in fiscal fourth quarter earnings, aided by higher sales.

The Deerfield, IL-based company reported fiscal fourth quarter net income of $792 million, or 87 cents per share, compared with $470 million, or 49 cents per share, in the year-ago period. Excluding a huge one-time gain, adjusted profit was 57 cents per share.

Revenue rose 6.5% from last year to $18 billion.

On average, Wall Street analysts expected a smaller profit of 55 cents per share, on slightly lower revenue of $17.94 billion.

WAG noted that there has been no progress in working out a new deal with pharmacy benefits provider Express Scripts ( ESRX ), but that the company is exploring several options.

Walgreen shares rose $1.12, or +3.1%, in premarket trading Tuesday.

The Bottom Line

Shares of Walgreen ( WAG ) have a 2.50% dividend yield, based on last night's closing stock price of $36.03. The stock has technical support in the $24 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.

Walgreen Company ( WAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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