Analyst are saying flu shots may be down compared to last year due to the H1N1 scare. But from what I'm seeing, flu shots are selling double digits daily and October stats are really, I mean really picking up. In addition, it is now covered by the states medicaid plan which was not last year. They (analyst) did not seem to factor into the earnings the other vaccines that are also in high demand. I have seen double digit demands for the Tdap vaccine as well as since now the pneumovax is recommended for anyone 65 and over, it is covered by medicare and lots of seniors are getting it. Rx scripts has increased about 15% per store just from vaccines alone. Now multiply that by how many stores? I am predicting a surprise in december earnings alone with increase in front end sales from X-mas. Cha-ching...!!!
The BIG surprise is that you don't have a understanding about the Pharmacy business, medical services or income statements.
I am happy for you, that u are seeing a increase in this short term business, the question you should ask yourself, is what long term maintenance medication growth you are seeing.. and what NEW PAYOR contracts your company is winning ..
If you read my statement, I simply said that WAG is likely to beat expectations this quarter compared to last year. I did not say WAG is the bomb and will outperform the industry or the market. And to answer you, yes, Walgreens did have a new payor for flu shots this year, couple of private insurance, and state medicaid which was absent last year. Also, last year, I don't remember Walgreens offering any pneumovax and it is also now covered by medicare. I'm simply saying they are offering much more shots and a variety of them and the profit margins are big, likely to boost revenues coming this quarter compared to last. Chill.