Volume Spike Investor

Walgreen (WAG) beat Wall St. forecasts for its most recent quarter and that has moved shares up 7% to $36.69, well above its previous 52-week high of $34.81.

Net earnings for the quarter ended Aug. 31 were $436 million or 44 cents per diluted share, including the impact of 3 cents in costs and 7 cents in savings associated with the company’s Rewiring for Growth initiative. This reflects a 1.5 percent decrease from $443 million or 45 cents per diluted share, in the same quarter a year ago. Last year’s quarter included the benefit of a vacation accrual adjustment of $79 million, or 5 cents per diluted share.

Net earnings for fiscal 2009 were $2.01 billion or $2.02 per diluted share, including the impact of 16 cents in costs and 16 cents in savings associated with the Rewiring for Growth initiative. This reflects a 7.0 percent decrease from last year’s $2.16 billion or $2.17 per diluted share.

Cash flow from operations increased 55 percent to $852 million for the quarter and 35 percent to $4.1 billion for the year. Drugstore performance, including improved working capital, was the key driver.

Douglas A. McIntyre